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Student loans discharged even when Debtor was not required to make payments on loans

In Murphy v. United States, 15-11240-j7 (Bankr. D. N.M. June 1, 2018), the Bankruptcy Court in New Mexico held that a debtor who was not obligated to make payments on student loans because she qualified for a -0- payment under an Income Based Repaym… Read More
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Supreme Court Sets a Trap for the Unwary Debtor

“One of the ‘main purpose[s]’ of the federal bankruptcy system is ‘to aid the unfortunate debtor by giving him a fresh start in life, free from debts, except of a certain character.’” Lamar, Archer & Cofrin, LLP v. Appling, 584 U.S. _… Read More
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Chicago Court orders City to surrender vehicle to Debtor notwithstanding asserted possessory lien to secure traffic tickets

In a recent case, Judge Schmetterer held in In re Cross, Adversary No. 18 AP 00154, that the City of Chicago did not have the right to retain a chapter 13 debtor’s vehicle to protect its possessory lien on the car that allegedly secured paymen… Read More
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Parties to a Civil Union Held Eligible to File a Joint Petition

As reported by Rochelle’s Daily Wire on May 23, 2018, Bankruptcy judges in California and Chicago disagree on whether parties to a civil union or domestic partnership are “spouses” eligible to file a joint bankruptcy petition. In the Chicag… Read More
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Bankruptcy Costs Limit Access

According to an article published in Pro Publica, a consumer’s inability to pay attorneys’ fees prevents many consumers from filing for bankruptcy.  This phenomenon has spawned considerable debate about the appropriate “fix”… Read More
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The average American has a credit card balance of $6,375, up nearly 3 percent from last year, according to Experian.

According to the Tribune (1/22/18) Americans are defaulting on their credit cards at the highest rate in nearly a year, and Chicagoans are leading the pack. Chicago residents are now more likely to miss a credit card payment than residents of any oth… Read More
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Ariane Holtschlag Interviewed at ABI Winter Meeting

We are proud to share an exclusive interview conducted by Bill Rochelle of the ABI with Ariane Holtschlag, FactorLaw’s bankruptcy attorney, regarding some of the cutting edge consumer issues in the Northern District of Illinois. Watch the inter… Read More
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Boston Judge Allows Conversion to Chapter 13 Just to Prevent the Sale of a Home

As reported by the American Bankruptcy Institute on December 29 2017, a Boston Judge Allows Conversion to Chapter 13 Just to Prevent the Sale of a Home Consumers are entitled to convert a chapter 7 case to chapter 13 even if the only reason is to pre… Read More
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Eleventh Circuit Joins Ninth in Allowing Appellate Counsel Fees for a Stay Violation

According to the ABI’s Rochelle’s Daily Wire: The Eleventh Circuit ruled that a debtor is entitled to recovery of attorneys’ fees incurred in upholding a judgment for violation of the automatic stay, siding with the Ninth Circuit’s de… Read More
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Most Districts Opt Out of National Chapter 13 Plan

Research by Bloomberg Law shows that only about 13 of a total 94 judicial districts will use the national form. The others all have local forms (although Bloomberg Law hasn’t independently confirmed if or how many of these conform with the bankrupt… Read More
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