In re: Tolomeo

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 16-1083
Decision Date: 
August 11, 2016
Federal District: 
N.D. Ill., E. Div.
Holding: 
Appeal dismissed

Dist. Ct. did not err in granting creditor’s motion seeking to have defendants (wife and businesses controlled by debtor) deemed alter egos of debtor for purposes of having defendants’ assets turned over to debtor’s bankruptcy estate for purpose of distribution to debtor’s creditors. While defendants argued that Bankruptcy Ct. lacked authority to enter subsequent asset turnover order under 28 USC section 157(c)(1) because turnover issue was not “core proceeding,” and thus only Dist. Ct. could enter instant turnover order, Ct. of Appeals found that Bankruptcy Ct. could enter instant turnover order, because turnover of defendants’ assets to debtor’s estate and liquidation of assets for benefit of debtor’s creditors was “core proceeding” that could be considered by Bankruptcy Ct.