United States Seventh Circuit

In a bankruptcy case in which debtors formed a corporation to buy a secured claim against their own bankruptcy estates, equitable subordination of debtors' claim is reversed where, even if debtors' action amounted to misconduct, the other creditors of the estate were not harmed.

Appellate Information

• Argued 11/05/2007
• Decided 10/20/2008
• Published 10/20/2008

Judges

• SYKES, Circuit Judge., Before POSNER, EVANS, and SYKES, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellant:
  
• Melanie Pennycuff (argued), Chicago, IL, for Garlin Mortg. Corp., Catherine L. Steege, Phillip W. Nelson (argued), Jenner & Block, Chicago, IL, Diane J. Silverberg, Kovitz, Shifrin & Waitzman, Buffalo Grove, IL, for Debtors.