Bankruptcy Ct. did not err in finding that certain transfers by owner of company to third-party were voidable under 11 USC section 548 on grounds of actual or constructive fraud, under circumstances, where: (1) company had filed Chapter 7 bankruptcy petition; (2) third-party had received $45,400.81 in payments from company during four-year span prior to bankruptcy filing under circumstances that suggested that payments were for personal reasons; (3) company did not receive reasonably equivalent value in exchange for its transfers to third-party; and (4) company was insolvent at time of instant transfers where company’s liabilities exceeded its assets during relevant time period. Also, Bankruptcy Ct. could properly impose sanctions on third-party for attorney fees incurred for third-party’s discovery lapses, even though third-party eventually complied with discovery requests.
Federal 7th Circuit Court
Civil Court
Bankruptcy