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Serving Clients throughout
Chicago and the Suburbs

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Bankruptcy Appeals

  • Bankruptcy Courts are part of the Federal Court system.
  • To appeal a decision one must appeal to Bankruptcy Appellate Panel (BAP) of the Federal Circuit. From there appeals go to the Circuit Court of Appeals.
  • Basis for appeal is similar to State and Federal appeals: legal error on the part of the Bankruptcy Court.
  • Appeal is based on lower Court’s record and Appellate Court will not entertain additional evidence or hear witnesses
Fundamentals of Bankruptcy Law and Procedure in Illinois Chapter 13 Issues

“Should I stay or should I go…” Chapter 13 or Chapter 7?

  • Chapter 7: Debtor’s non-exempt property liquidated to pay debts of the Estate
  • Orders creditors not to attempt collection of debts in future
  • Chapter 13: portion of Debtor’s future income is used to pay Estate obligations, as feasible
  • Broader release of several types of debts not dischargeable in Chapter 7
  • More expensive for the Debtor
  • Takes longer

Fundamentals of Bankruptcy Law and Procedure in Illinois The Creditor’s Perspective

The Importance of Pre-Bankruptcy Collection: 90 Days Plus

  • Bankruptcy Code makes it extremely important to collect more than 90 days prior to the filing of a Petition.
  • §547(b): payments made within 90-days prior to filing are presumptively preferential and therefore fraudulent.
  • Both State and Federal law provide that any transfer by an insolvent Debtor on account of an antecedent debt is presumptively fraudulent.
  • Once Debtor has filed an Automatic Stay goes into effect and the Creditor is virtually powerless.
Client Reviews
We can not complete put in to words the comfort that we feel with Mr. Hedayat and associates into repersent us in our legal case. Mr. Hadayat and everyone on his team not only have repesented us to the highest form that anyone could ask for in our legal system... Leslie A.
Mr. Hedayat and all of his associates ALWAYS go above and beyond normal expections of Attorneys. Mr. Hedayat and each and every person that works with him truly care-not only about your legal case, but how you are getting through the case. Leslie
You could not ask for a better attorney than M. Hedayat. His staff is the most pleasant people talk to. I recomend this attorney to anyone that has legal issues. Keep up the good work. Joseph W.