7th Circuit

Courts Are Split on Whether Counsel Fees Are Considered in the Chapter 13 Best Interests Test

Deferred payments to unsecured creditors in a chapter 13 plan must equal the present value of the distributions required by the best interests test, Judge Halfenger says.

Espinosa Doesn’t Forgive All Procedural Defects in Confirmation, Judge Ludwig Says

To sell free and clear, someone with an interest in the property must receive the notice required for service of a summons and complaint. Actual notice doesn’t suffice.

Debtors Win in District Court: They Can Avoid Judicial Liens on Impounded Cars

Car owners lost in Fulton but won when a Chicago district judge affirmed and ruled that debtors may avoid judicial liens on impounded cars.

Insurers Don’t Pay Bankruptcy Costs in a Mass-Tort Chapter 11

A voluntary chapter 11 case is neither a ‘suit’ nor a ‘claim’ against a debtor giving rise to an insurer’s duty to defend.

Chapter 12 Farmer Plan May Pay Impaired Secured Creditors Directly

The lender’s consent to direct payments by the family farmer persuaded Judge Furay to overrule the chapter 12 trustee’s objection to the plan.

Claims Discharged in Chapter 7 Revive If the Case Is Converted to Chapter 13

Courts are split over the effect on claims discharged in chapter 7 if the debtor converts the case to chapter 13.

The Automatic Stay Is a Get-Out-of-Jail Free Card in Chicago

The Seventh and Ninth Circuits may not be on the same page when it comes contempt citations falling under the Section 362(b)(4) exception to the automatic stay.

Seventh Circuit Bars ‘Objector Blackmail’ in a Class Settlement

The Seventh Circuit uses broad equitable powers to prevent one member of a class from receiving a settlement when appealing an issue applicable to the entire class.
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Seventh Circuit Requires Court Findings for a Plan Provision the Code Allows

The Seventh Circuit opinion raises the question of whether (or when) a court may restrict the use of a provision in a chapter 13 plan that Section 1322(b) permits.
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Force Majeure Clause Cut an Illinois Debtor’s Rent by 75%

Chicago judge cut rent by 75% after governor prohibited on-premises dining in the debtor’s restaurant.

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