MATTER OF TOLONA PIZZA PRODUCTS CORP.

No. 92-3386.

3 F.3d 1029 (1993)

In the Matter of TOLONA PIZZA PRODUCTS CORPORATION, Debtor-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided August 19, 1993.


Attorney(s) appearing for the Case

Daniel A. Zazove, Towbin & Zazove, Chicago, IL, Warren R. Fuller, Karen Arndt Berres, argued, South Barrington, IL, for Rose Packing Co., Inc.

Richard S. Alsterda, argued, Alexis R. Logan, Coffield, Ungaretti, Harris & Slavin, Chicago, IL, for Tolona Pizza Products Corp.

Before POSNER, FLAUM, and RIPPLE, Circuit Judges.


POSNER, Circuit Judge.

When, within 90 days before declaring bankruptcy, the debtor makes a payment to an unsecured creditor, the payment is a "preference," and the trustee in bankruptcy can recover it and thus make the creditor take pot luck with the rest of the debtor's unsecured creditors. 11 U.S.C. § 547. But there is an exception if the creditor can show that the debt had been incurred in the ordinary course of the business of both the debtor and the creditor...

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