Debtor Corporation Made Voluntary Transfers to Debtor's President In a Bankruptcy Law Case
In In re H. King & Associates, 295 B.R. 246 (N.D. Ill. 2003) (hereafter Krol), the court held that the bankruptcy trustee established the requisite elements under both sections 5(a)(1) and 5(a)(2) where, at the time the debtor corporation made voluntary transfers to debtor's president, the debtor corporation had already incurred a judgment debt in the approximate sum of $ 700,000. Krol, 295 B.R. at 290.
Further, the transfers were made without receiving a reasonably equivalent value, and there was no evidence adduced to show that the transfer was for a lien.
Also, after the transfers, the debtor failed to retain sufficient property to pay its debts to other creditors. Krol, 295 B.R. at 290.