7th Circuit

Eight Lower Courts Disagree with the Fourth Circuit on Sub V Nondischargeability

Nondischargeability for Sub V corporate debtors is sub judice in the Fifth Circuit.

Bankruptcy Is No Get-Out-of-Jail-Free Card for a Disobedient Debtor

When there has been a division of marital property, does a debtor only hold legal title to property given to the spouse?

When Inherited Property Becomes Property of the Debtor’s Bankruptcy Estate

Being an heir by itself doesn’t bring a decedent’s estate into the heir’s bankruptcy estate.

Debtor May Amend a ‘13’ Plan to Modify the Treatment of a Secured Creditor’s Claim

Chicago Bankruptcy Judge David Cleary followed a decision by then-district Judge David Hamilton and “respectfully” disagreed with decisions by two predecessors on the same bankruptcy bench.

Is an Option an Executory Contract or Not?

When there is a recorded option to purchase real estate, Prof. Westbrook would have analyzed the specific performance rights of the holder of the option under state law, not the question of whether the option was executory.

If There’s No Diminution of the Estate, There’s No Preference or Fraudulent Transfer

Just because the debtor orchestrated a fraudulent transfer, the Seventh Circuit tells us there’s nothing for a trustee recover if there was no diminution of the estate.
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J&J, Redux: Bankruptcy Court Dismissed 3M Subsidiary’s Chapter 11 Case

Indianapolis Bankruptcy Judge Jeffrey Graham says that the bankruptcy court cannot become “another court of general jurisdiction.”

District Judge Reads the Safe Harbor Broadly to Immunize a Leveraged Buyout

Although a stock purchase and a loan payoff were one month apart, a district judge in Indiana found a sufficient nexus to invoke the safe harbor and dismiss a fraudulent transfer suit.

Seventh Circuit to Rule on Paying ‘13’ Trustees if Dismissal Precedes Confirmation

Within the next year, four circuits will have ruled on a split where some lower courts pay chapter 13 trustees and others don’t when dismissal precedes confirmation.

‘Preponderance’ Replaced ‘Clear and Convincing’ on Adoption of the Bankruptcy Code

The Seventh Circuit explained how preponderance of the evidence became the standard of proof for turnovers and dischargeability when the Bankruptcy Code replaced the Bankruptcy Act.
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