Legal Question in Bankruptcy in Illinois

If you are a "related party" the lookback rule is 1 year, so it is possible. If you are a related party and it's MORE than a year prior to bankruptcy, you will need to show that's the case. But if the sole shareholder wrote a company check for a PURELY personal obligation, and you knew it, that could be conspiracy/combination for something akin to embezzlement and the 1-year rule doesn't apply. So the trustee is figuring you as a related party who was repaid a personal debt from corporate monies and you should have known it should not have come from there so you probably agreed with the shareholder to handle things this way wrongfully. Depending on how much we're talking about, I would hire an attorney to look at all the facts and then give you a firm opinion. I can tell you somehow think that because it was a sole shareholder situation somehow you're in the clear, but it's just the opposite. The corporation, even with 1 shareholder, is a separate "person" in the law and the shareholder/director/officer breached his fiduciary obligations to the corporate entity.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is currently licensed to practice law actively only in the State of Illinois, inactively in Florida. Responses are based solely on Illinois law unless stated otherwise.