The Illinois Supreme Court reversed, noting that just because the Seymours had a legal duty to disclose their suit but failed to do so did not establish intent to deceive or manipulate the Bankruptcy Court. Nor, as the Defendants had asserted, did the Seymours’ 2010 Motion to Modify constitute proof that they were aware of...Read More

The Attorney for Defendants in the District Court filed a lien on proceeds in a related State case and attempted to jump the line in terms of priority. When the District Court stopped him he sought relief in the 7th Circuit. The Appellate Court not only disagreed with his actions but actually sanctioned him for...Read More

Debtor Hospital filed an adversary complaint claiming that a prepetition government claim should be subject to the Automatic Stay. The Bankruptcy Court agreed citing 11 U.S.C. 362(a)(6). District Court reversed in part. The 7th Circuit Reversed again.Read More

The 7th Circuit found that the phrase “for cause” as used in the Bankruptcy Code embraces conduct that, even if not a violation of required procedures, avoids repayment of a debt without an adequate reason. In other words, the case was dismissed because the Schwartzes failed to pay as much of their indebtedness as they...Read More

As stated by the Supreme Court: requiring Bankruptcy Attorneys to bear the costs of their fee-defense litigation under 330(a)(1) "creates no disincentive to bankruptcy practice." Hear that Bankruptcy lawyers? You're on your own.Read More

7th Circuit Court of Appeals holds that auctioning off a lawsuit owned by a Debtor in Bankruptcy placed the claim-buyer ahead of other creditors; it also found that the claim-buyer had not been a "good faith" purchaser, and that no valid interest was impaired by rescinding the sale so the Debtor could pursue its suit...Read More

The Court stated conclusively that a Debtor in a Chapter 7 Bankruptcy may not void a junior mortgage lien under §506(d) even when the value of the senior mortgage lien exceeds the value of the Debtor's home if the junior claim is secured by a lien and allowed under §502 of the Code.Read More

Whether the issue is a judgment in State Court or confirmation of a Bankruptcy Plan of Reorganization, only "final and appealable" decisions may be overturned by a higher Court. Maybe we all know that, but once in a while we need to be reminded just what is and is not final.Read More

11 USC 1322(b) provides that wholly undersecured liens on real property may be removed or “stripped,” and the debt to which they relate treated as unsecured in a Chapter 13 Plan of Reorganization. Lien stripping has 2 distinct, and very desirable, benefits for debtors:Read More

On February 9, 2015 the Bankruptcy Court for the Northern District of Illinois, Eastern Division ruled in the case of Brandt vs. Rohr-Alpha, a case involving fraudulent transfers and whether certain debts can be avoided in Bankruptcy.Read More