Legal Opinion
In Re Kreisler
Court of Appeals for the Seventh Circuit
Decided October 20, 2008No. 06-3881PublishedCited by 31 opinions
1Opinion of the Court
SYKES, Circuit Judge.
The bankruptcy rules authorize claims trading, a practice in which a creditor sells its claim against a bankrupt debtor to a third party in exchange for cash or something else of value. See Fed. R. BaneeP. 3001(e). Claims trading allows creditors to opt out of the bankruptcy system, trading an uncertain future payment for an immediate one, so long as they can find a purchaser. The purchaser essentially becomes an investor in the bankruptcy estate, betting that the future payout will eventually be more than the claim’s purchase price.
This case involves claims trading with…
2Cases cited4 opinions
- Pepper v. LittonSupreme Court of the United States · 1939
- In the Matter of Mobile Steel Company, Debtor. Elaine E. Benjamin v. Lester Y. Diamond, as Trustee in Bankruptcy for Mobile Steel, Inc.Court of Appeals for the Fifth Circuit · 1977
- United States v. NolandSupreme Court of the United States · 1996
- In re Lifschultz Fast FreightCourt of Appeals for the Seventh Circuit · 1997
3Cited by31 opinions
- Matrix IV, Inc. v. American Nat. Bank & Trust Co.Court of Appeals for the Seventh Circuit · 2011
- Federal Communications Commission v. Airadigm Communications, Inc.Court of Appeals for the Seventh Circuit · 2010
- In re Sentinel Management Group, Inc.Court of Appeals for the Seventh Circuit · 2013
- Official Committee of Unsecured Creditors of SGK Ventures, LLC v. NewKey Group, LLC (In re SGK Ventures, LLC)United States Bankruptcy Court, N.D. Illinois · 2014
- Gierum v. Glick (In re Glick)United States Bankruptcy Court, N.D. Illinois · 2017
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