In re Paul, 355 B.R. 64 (Bankr. N.D. Ill. 2001)
Jun 28, 2001OUTCOME: Trustee's motion to sell Debtor's annuity denied
The trustee in this Chapter 7 bankruptcy case, Thomas Sullivan, filed an adversary complaint seeking authority to sell and assign the debtor's right to receive payments under an annuity. The annuity wa ... s purchased by Country Mutual Insurance Company ("Country Mutual") as part of a structured settlement of a personal injury claim asserted by the debtor. The trustee seeks authorization to sell or assign the debtor's right to receive payments under the annuity under § 363(b) of the Bankruptcy Code, 11 U.S.C. § 363(b). However, under an Illinois statute, the debtor could not sell her right to receive payments under the annuity unless authorized to do so by a circuit court of the State of Illinois. Because the trustee holds only the same rights as the debtor in the annuity, he cannot sell the right to receive payments without the authorization of the state court. The court therefore denies the trustee's motion for summary judgment.
