United States Seventh Circuit

Order holding parents and children jointly and severally liable to repay money to the parents' bankruptcy estate, in an action by the bankruptcy trustee to set aside fraudulent conveyances out of custodial accounts set up for the two children, is affirmed where the bankruptcy judge did not commit clear error in determining that the custodian of the accounts was the entity who benefited from the initial transfer, since she used the funds for personal benefit. The judgment is modified to hold that the children are not personally liable and that their obligation only extends to the amount of the funds originally placed in the custodial account.

Appellate Information

• Argued 12/01/2006
• Decided 01/05/2007
• Published 01/05/2007

Judges

• EASTERBROOK, Chief Judge., Before EASTERBROOK, Chief Judge, and RIPPLE and MANION, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellees:
  
• John R. Burns, III, Mark Werling (argued), Baker & Daniels, Fort Wayne, IN, for Plaintiff-Appellee., Robert L. Nicholson, Adam L. Hand (argued), Beckman Lawson, Fort Wayne, IN, for Defendants-Appellants.