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.
Claims Discharged in Chapter 7 Revive If the Case Is Converted to Chapter 13
Courts are split over the effect on claims discharged in chapter 7 if the debtor converts the case to chapter 13.
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.
Medical Bills Are Held to Be Consumer Debts, Invoking the Means Test
Someone forced into bankruptcy on account of medical bills will also be forced into chapter 13.
A Judgment Lien on Entireties Property Isn’t Avoidable in Illinois, Seventh Circuit Says
A judicial lien impairing a homestead exemption is avoidable in some states under Section 522(f), but not in others.
Did Segal Survive Butner in Defining Property of the Estate?
Judge Perkins in Illinois says the ‘sufficiently rooted’ test from Segal v. Rochelle did not survive Butner and the adoption of the Bankruptcy Code.
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.
Chicago Case May Resolve the Circuit Split on the New Value Defense
Bankruptcy judge reluctantly follows precedent where the Seventh Circuit is in the minority on the new value defense.