» Illinois Bankruptcy

State law conversion claim allowed for improper disposition of attorney's fees

In Deborah K. Ebner, as Chapter 7 Trustee for the Bankruptcy Estate of Santilli Law Group, Ltd.Plaintiff, v. Alfred Vano, Case 17-00293, (Bankr. N.D. Ill. 06/15/18), Judge Cox of the Northern District of Illinois held that an attorney that improperly… Read More
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Serial bankruptcy filings initiated to delay creditor action can lead to criminal charges

In United States v. Williams, Case No. 17-2244 (7th Cir., June 6, 2018), the Seventh Circuit upheld jury trial verdict against Charlise Williams on five counts of bankruptcy fraud, resulting in 46 month prison sentence. Read More
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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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Millions of U.S. homeowners still underwater on mortgages, with Chicago being one of the hardest hit markets

According to the American Bankruptcy Institute:  A staggering number of American homeowners remain underwater on their mortgages a decade after the housing bubble burst, Bloomberg News reported. Almost 4.5 million households — or 9.1 percent — o… 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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Illinois among top 10 states for credit card debt.

According to a May 30, 2018 article in Illinois Patch, Illinois is among the top 10 states where residents have the most credit card debt. That’s according to a report released Tuesday by New York Comptroller Thomas DiNapoli. According to the s… 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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According to new case NACBA reported, a Chapter 13 Debtor could not defer surrender of her home until her son graduated High School

In re Thompson, from the District of Massachusetts (17-11318-MSH), the court rejected a plan that delayed the surrender of a house so the debtor’s child could finish high school without moving.  The court reasoned, among other things, that … Read More
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