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Bankruptcy Costs Limit Access

According to Pro Publica, a consumer’s inability to pay attorneys’ fees prevents many consumers from filing for bankruptcy.  https://www.propublica.org/article/when-you-cannot-afford-to-go-bankrupt.  This phenomenon has spawned conside… 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

FactorLaw is proud to share the interview that Bill Rochelle of the ABI conducted of our very own Ariane Holtschlag on some of the cutting edge consumer issues in the Northern District of Illinois …. www.youtube.com/watch?v=JR9vvIsN51g 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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Court Rules Engagement Rings are Exempt

On Nov. 20, Bankruptcy Judge Jack B. Schmetterer of Chicago ruled that a wedding ring and an engagement ring are exempt as “necessary wearing apparel” without regard to value, as long as the wearer is still married to the person who gave it. Judg… Read More
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Pre-bankruptcy Tuition Payments not Subject to Clawback

It is not uncommon for a chapter 7 bankruptcy trustee to sue an educational institution to recover pre-bankruptcy tuition payments parents make on behalf of their children.  The theory is that such payments benefit the child, not the parents, and ca… Read More
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Discharge injunction violation results in $90,000 award

A recent case in the District Court, Romanucci & Blandin, LLC et al. v. Lempesis, affirmed a judgment by the Bankruptcy Court awarding $90,000 for an especially egregious violation of the discharge injunction, including damages for emotional dist… Read More
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New Discovery Rules in Chicago's Federal Court

The District Court for the Northern District of Illinois just changed the discovery rules for how and when parties can get information and documents from their opponents in federal lawsuits. If you are involved in a federal lawsuit, it is important t… Read More
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