Illinois Northern District

PACA Debt Isn’t Nondischargeable, Chicago Judge Says, Siding with the Minority

Lower courts are split on whether violating a PACA trust results in a nondischargeable debt. The question is on direct appeal to the Eleventh Circuit.

Complaint Survives Against Chicago for Not Releasing Impounded Cars Immediately

Despite Fulton, a Chicago bankruptcy judge rules that the City of Chicago might have violated Section 362(a)(4), (a)(6) or (a)(7) by refusing to release impounded cars immediately after a debtor files a chapter 13 petition.

Judge Barnes Tells Gamblers What Records to Keep to Win a Discharge in Bankruptcy

The suggestion that the debtor never won undercut the poker player’s testimony about uncorroborated gambling losses.

Courts Have Made the FDCPA a ‘Dead Letter,’ Chicago District Judge Says

The opinion tells plaintiffs what actions to take before filing suit to ensure constitutional standing to pursue a claim under the FDCPA.

Statutory Basis for Permanent Injunctions in Chapter 15 Explained by Judge Barnes

The statutory basis for permanent relief under today’s chapter 15 was found in former Section 304, which chapter 15 superseded.

Bankruptcy Judge Helps a Debtor Who Couldn’t Defend a Dischargeability Suit

Bankruptcy judge had tricks up his sleeve to help a debtor who couldn’t afford a lawyer to defend a dischargeability suit.

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.

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.

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.

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.