Atlantic City, N.J.’s pride has become its downfall. In the past few years, many of the city’s casinos have closed down or entered bankruptcy. Consequently, the city itself, which is heavily dependent on casino revenue, has taken a severe financial hit.
Atlantic City’s decline is due in part to the legalization of gambling and casino operations in neighboring states. Since the town’s chief draw for many years has been gambling, there is now less of a reason to visit Atlantic City if other cities with more diverse attractions (like Philadelphia and Baltimore) also offer luxurious casinos and good gambling opportunities.

Having just lost a state court suit to the tune of $1.5 million with the winner about to collect on the $1.5 million, a debtor with a substantial income files a skeletal chapter 11 petition. One creditor, the state court victor, holds more than 65 percent of the total debt, and the initial list of exempt assets is long and their value considerable. Within 69 days of the petition’s filing and with 51 days left for the debtor to propose a reorganization plan, even these verities are apparent from the skimpy record.

The Bankruptcy Code generally restricts the trustee’s employment of professionals to those “that do not hold or represent an interest adverse to the estate, and that are disinterested.”[1] Broadly speaking, “disinterested” persons are those who do not have a pre-petition interest in or relationship with the debtor.

Football season is upon us, and in locker rooms across the country, coaches will be telling their teams, “Winning isn’t everything; it’s the only thing.”  Unfortunately for plaintiffs suing debtors in bankruptcy adversary proceedings, winning isn’t the only thing that matters. In fact, winning a judgment can be less than half of the battle.