Valuing disputed debts
Allonhill v. Stewart Lender Services
In brief
- Where it stands
- Dismissed
Petition denied.
- What it’s about
- Allonhill and Stewart Lender Services disputed whether a court could use a settlement reached years later, rather than a ruling near the transfers or an estimate of the chance Allonhill owed the debt, to assess whether it had more debts than assets.
- Who it affects
- Allonhill and Stewart Lender Services received no Supreme Court answer on how that disputed liability should be valued for the insolvency test.
Summary: written with AI from the case record.
What it's about
The Supreme Court refused to hear the case, leaving that question undecided.
The dispute concerns a bankruptcy rule that asks whether a debtor had more debts than assets when it made challenged transfers.
Question presented
Whether, in determining insolvency under 11 U. S. C. § 547(b)(3), a court may disregard the value of a disputed liability as established by either (1) a court judgment close in time to the challenged transfers; or (2) a probability-discount approach, and instead may base the valuation of the liability on a post-petition settlement that was reached years after the prepetition transfers.
Documents
Docket activity
New analysis added
AI analysis generated: Case Briefing
AI analysis generated: Decision Record
Case data updated: summary, question_presented, generation_metadata
Case data updated: question_presented, extraction_metadata
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Brief added: Petition
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.