In this carefully written Opinion Judge Schmetterer evaluates the arguments in a Motion to Dismiss an Adversary Complaint based on fraudulent behavior. Beyond its examination of Bankruptcy Fraud, this Opinion is notable for its recitation of the ways this former Attorney conned his Client out of money.Read More
Domestic support obligations are exempt from discharge in Bankruptcy and entitled to priority payment in a plan of reorganization. The tricky part is determining just what constitutes a "domestic support obligation" entitled to special treatment. Would a spouse's Attorneys' Fees be entitled to special treatment? Interest on unpaid sums? Court sanctions for unpaid support?Read More
This Opinion from Northern District of Illinois Bankruptcy Judge Jack Schmetterer showcases the interplay of Federal and State law in a complex commercial scenario. It also displays the characteristic desire of Federal Courts to keep things clear and simple: which is unfortunately the opposite of how convoluted factual and legal situations play out in State...Read More
The Bankruptcy Court pries apart a Motion for Judgment on the Pleadings brought by banks and servicers that claim to be entitled to collect mortgage payments from the Debtor while peering into the world of securitized mortgages - the process of bundling loans into trusts, slicing trusts into securities, and trading those securities on Wall...Read More
The Judge tasked with managing the largest municipal Bankruptcy in American history cleared Detroit to emerge from its Chapter 9 reorganization and ended a series of hard-fought battle between creditors, citizens, employees, and pension recipients. Before approving the move though, Judge Rhodes issued a heart-felt plea: "move past your anger" and "fix the Motor City."Read More
In the recent case of Beeman et. al. v. Borders Liquidating Trust et al. from the Circuit Court for the Southern District of New York decided on October 29, that Court examined what ought to happen when relief that could be granted, for practical reasons is not. This controversial policy, referred to as "Equitable Mootness"...Read More
Recently I got an e-mail from the newly-formed Consumer Financial Protection Bureau (CFPB). You remember the CFPB, right? No? That's alright. But you probably remember the agency's public face, now-Senator Elizabeth Warren of Massachusetts. So, after coming out of the shoot a few years with the President's blessing and much fanfare, the CFPB has released...Read More
So you're doing business as usual and notice that payments from your customer are getting later and later. Turns out that customer is struggling to navigate in the sputtering economy. Waiting for your money is bad enough; but what if you receive a demand to refund what you've been paid? And not because of anything...Read More
The Federal Reserve and Government forecasters agree: the Great Recession is over. But not for millions of Americans whose homes remain underwater thanks to the sub-prime mortgage scandal. Nor is it over for the millions more who lost their jobs and have only been able to secure part-time work with less pay and no benefits.Read More
In response to questions we get over and over, here is our unofficial Guide to Discharging Taxes in Bankruptcy. We've gathered many of the tried-and-true rules on the topic but they are constantly evolving, so take this guide with a grain of salt and always consult a competent Bankruptcy Attorney before making any decisions.Read More