Serving Clients throughout
Chicago and the Suburbs
"We Want to Be Your Lawyers"
- 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
“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
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.