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Monday, December 05, 2011

Ind. Decisions - Non-Indiana bankruptcy opinion today from 7th Circuit

In re IFC Credit Corp., an 11-page opinion by Judge Posner, begins:

IFC Credit Corporation voluntarily declared bankruptcy under Chapter 7 of the Bankruptcy Code on July 27, 2009. Its bankruptcy petition was signed only by its president, however, and he is not a lawyer—a slip that precipitated this appeal—though the next day the company filed an amended petition signed by a lawyer. * * *

Northbrook’s jurisdictional argument , rejected by the bankruptcy and district judges and now pressed on us, is that the fact that the original petition for bankruptcy was not signed by a lawyer made the bankruptcy proceeding void, or as state court cases say (though the question whether a person or firm or other entity may litigate in federal court pro se is a question of federal procedural law rather than of state law, Elustra v. Mineo, 595 F.3d 699, 704 (7th Cir. 2010)), a “nullity.” * * * If so, the absence of jurisdiction could not be cured by amending the petition, as IFC had done the day after filing it.

Posted by Marcia Oddi on December 5, 2011 11:00 AM
Posted to Ind. (7th Cir.) Decisions