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.
Receivership Court May (Sometimes) Bar the Filing of an Involuntary Bankruptcy
Court weighs the relative advantages of receivership versus bankruptcy in deciding whether to bar the filing of an involuntary bankruptcy.
Failure to Raise a Stern Objection Violates a Lawyer’s Standard of Care
The lawyer whose waiver led to Wellness International avoided malpractice by the skin of his teeth.
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.
Circuits Split on Trustee’s Ability to Extend the Dischargeability Deadline
A motion extending the dischargeability deadline does not require personal service on the debtor, Chicago judge rules.
Chicago Judge Refuses to Confirm a ‘Step’ Chapter 13 Plan
Judge Barnes won’t allow a chapter 13 debtor’s counsel to be paid at the expense of secured creditors.
Major Automatic Stay Issue Inches Toward the Supreme Court
Chicago parking ticket cases to be resolved in the Seventh Circuit.
Chicago District Judge Reestablishes Chapter 13 Debt Limits on Student Loans
Debtors with too much student loan debt are functionally ineligible for any form of bankruptcy relief.
Chicago Must Return Impounded Cars Immediately After a Chapter 13 Filing
Judge Thorne rules that exceptions to the automatic stay do not allow the City of Chicago to retain possession of impounded cars.