Illinois

Plan Amendment Barred When Just a Few Claims Had Been Paid After Confirmation

Substantial consummation under Section 1193(b) was defined by the bankruptcy court to mean commencement of distributions to some but not all creditor classes.

A Receiver May Move to Dismiss an Involuntary Petition, but May Not Answer

Surprisingly, there is little authority on whether or how a receiver may respond to the filing of an involuntary petition.

No Withdrawal or Jury Trial on Claims that Lawyers Violated Section 526

The district court opinion affirms the notion that bankruptcy courts have ‘core’ power without a jury to adjudicate claims of attorney misconduct.

Chapter 13 Can Shield Preferences from Recovery

So long as the debtor is paying unsecured creditors what chapter 13 requires, the debtor is not obliged to pursue preferences.

Although Unusual, Postpetition Retainers Are Permissible, Chicago Judge Says

The possibility that interim compensation allowances can be disgorged means that counsel won’t have an undue advantage over other administrative creditors, Judge Cleary says.

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The statutory basis for permanent relief under today’s chapter 15 was found in former Section 304, which chapter 15 superseded.