(630) 378-2200
Mon - Fri 8:00am - 5:00pm
Request a Case Evaluation

In re Netzel (Bkrtcy. ND Ill.)

Issue: Does corporate creditor have standing under Illinois law to bring a claim against one of its directors for fraud and defalcation in his Ch. 7 case?
The Upshot: As interpreted by the Bankruptcy Court, Illinois law would not confer standing on a corporate creditor to pursue the director of the corporation against which it had a pre-bankruptcy claim based on his “special circumstances” fiduciary duty to preserve the assets of his insolvent company in trust for the benefit of creditors; and the fact that the debtor used corporate funds to pay personal bills and assigned corporate contracts to other companies did not make any difference.

Leave a Reply

Let us help you!

If you need any helps, please feel free to contact us. We will get back to you with 1 business day. Or if in hurry, just call us now.

Call : 630.378.2200

Request a Case Evaluation