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MATTER OF PRINCE

Nos. 94-3474, 94-3714.

85 F.3d 314 (1996)

In the Matter of Douglas R. PRINCE and Jane Prince, Debtors-Appellants.

United States Court of Appeals, Seventh Circuit.

Decided May 31, 1996.

Rehearing and Suggestion for Rehearing Denied July 9, 1996.

Attorney(s) appearing for the Case

Daniel A. Zazove (argued), Barbara L. Yong (argued), Barbakoff, Zazove & Glick, Chicago, IL, Steven B. Towbin, D'Ancona & Pflaum, Chicago, IL, for Unsecured Creditors Committee.

David G. Lynch, Rudnick & Wolfe, Chicago, IL, Richard M. Kates (argued), Chicago, IL, for appellants Douglas Prince, Jane Prince.

Before FLAUM, KANNE, and ROVNER, Circuit Judges.

Rehearing and Suggestion for Rehearing En Banc Denied July 9, 1996.

KANNE, Circuit Judge.

When Dr. Douglas R. Prince and his wife, Jane Prince, filed for bankruptcy reorganization in 1981, Dr. Prince operated his orthodontics practice as a wholly owned professional corporation. As part of the plan of reorganization, Dr. Prince was to retain his practice, but the Princes agreed to pay the equity value of his stock in the professional corporation into a fund...

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