Illinois Northern District

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The statutory basis for permanent relief under today’s chapter 15 was found in former Section 304, which chapter 15 superseded.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

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.

Receivership Court May (Sometimes) Bar the Filing of an Involuntary Bankruptcy

Court weighs the relative advantages of receivership versus bankruptcy in deciding whether to bar the filing of an involuntary bankruptcy.

Failure to Raise a Stern Objection Violates a Lawyer’s Standard of Care

The lawyer whose waiver led to Wellness International avoided malpractice by the skin of his teeth.

Lenders Admonished to Demand Nothing More in Plans than the Law Allows

Judge Hunt in Chicago tells debtors’ counsel to oppose inclusion of unjustifiable provisions in chapter 13 plans, even if it means contested confirmation hearings.