GCK On Law
Additional Requirements to Bring Conversion Action for Return of Money
Conversion is an unauthorized act, which deprives a person of his property permanently, or for an indefinite time. See, In re Thebus, 108 Ill.2d 255, 259 (1985). Accordingly, to prove conversion, the plaintiff must prove the following elements by preponderance of...
Courts Disagree Whether Section 510(a) Allows Subordination Agreement to Assign Voting Rights in Chapter 11
Section 510(a) of the Bankruptcy Code provides that “[a] subordination agreement is enforceable in a case under this title to the same extent that such agreement is enforceable under applicable nonbankruptcy law.” However, while Section 510(a) provides for the...
Courts disagree whether an increase in net equity inures to the benefit of the debtor or the estate upon conversion from Chapter 13 to Chapter 7
Courts have adopted two different approaches on the impact of section 348(f)(1)(A) with respect to changes in property value or net equity between the petition date and the date of conversion from Chapter 13 to Chapter 7. Section 348(f)(1) of the Bankruptcy Code...
Courts Split on Whether Pursuit of Petition Claims in the Bankruptcy Court Violate the Automatic Stay
There is conflicting case law as to whether it violates the automatic stay for a creditor to sue the debtor in bankruptcy court on a prepetition claim, for example in an adversary proceeding. Although the language of Section 362(a)(1) of the Bankruptcy Code clearly...
Piercing the Corporate Veil
In general, a corporation is a legal entity that exists separately and distinctly from its shareholders, officers and directors, and such parties are normally not subject to corporate liabilities. Fontana v. TLD Builders, Inc., 840 N.E.2d 767, 775 (2005). See also,...