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.
Court:
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.
Farmers in Chapter 12 Don’t Qualify for PPP ‘Loans,’ Milwaukee Judge Rules
A PPP ‘loan’ under the Cares Act isn’t a ‘grant,’ thus the government isn’t barred from discriminating against a bankrupt under Section 525(a).
Another Case Shows the Need to Provide Remedies for Discharge Violations
Discharge was violated, but sanctions are likely out of reach.
Court:
Must a Debtor Be Destitute Before Discharging Student Loans?
Unemployed for 16 months, surviving on food stamps, and living rent-free enabled a debtor to discharge student loans.
Seventh Circuit: Reclamation Claims Are Subordinate to DIP Financing
The 2005 amendments to Section 546(c) departed from state law under UCC § 2-702 by creating a federal rule making reclamation claims subordinate to existing secured claims and DIP financing.
Court:
PACA Doesn’t Give Rise to Denial of Discharge for Defalcation, Chicago Judge Says
A PACA trust lacks the hallmarks of a trust, so a failure to pay a produce supplier doesn’t give rise to a nondischargeable debt for defalcation while acting in a fiduciary capacity, Judge Goldgar says.
Even a $3 Million Claim for Severance Is Exempt in Illinois as Wages, Easterbrook Says
Pleas to injustice and unfairness failed to persuade the Seventh Circuit to depart from a state law exemption for wages.
Court:
Seventh Circuit Limits Punitive Damages to Total Compensatory Damages of $582,000
Despite atrocious mortgage servicing, the circuit court cut a jury’s $3 million award of punitive damages to $582,000.
Court:
Medical Bills Are Held to Be Consumer Debts, Invoking the Means Test
Someone forced into bankruptcy on account of medical bills will also be forced into chapter 13.