Chapter 7 debtor lacked standing to appeal Dist. Ct.’s order that dismissed for lack of standing, debtor’s appeal of Bankruptcy Ct. order that approved Trustee’s $550,000 settlement of debtor’s state-court action in exchange for debtor’s dismissal of state-court action, even though debtor had valued said lawsuit at $16 million. Debtor lacked standing to challenge Bankruptcy Ct.’s order because debtor could only speculate as to value of his assets, and he could not establish that he would recover any estate assets after distribution of estate‘s assets to creditors. Moreover, record showed that debtor had at most $15 million in assets, and that he conceded that his liabilities totaled $20 million. As such, debtor could not explain for standing purposes how it was likely that any distribution from estate would likely flow to him.
Federal 7th Circuit Court
Civil Court
Bankruptcy