Illinois Southern District

Releasing a Lien Under Section 1325(a)(5)(B) Is Different When There Are Co-Debtors

Despite Section 1325(a)(5)(B), an auto lender was entitled to retain a lien when there were co-debtors.

Section 1325(b)(1) Held Applicable to Post-Confirmation Amendments to Chapter 13 Plans

Courts are split on whether the confirmation requirements in Section 1325(b)(1) apply when a debtor seeks confirmation of an amended plan.

Here’s How a Disclaimed Inheritance Can Be Recovered Under Section 544(b)

Although a disclaimed inheritance is ordinarily beyond the avoiding powers, a trustee can step into the shoes of the IRS to set aside the disclaimer.

Assets Sold Free and Clear of a Multi-Employer Pension Plan’s Withdrawal Liability

The Seventh Circuit has yet to rule precisely on whether the bankruptcy court can sell assets free and clear of successor liability.

No Withdrawal or Jury Trial on Claims that Lawyers Violated Section 526

The district court opinion affirms the notion that bankruptcy courts have ‘core’ power without a jury to adjudicate claims of attorney misconduct.

Chapter 13 Can Shield Preferences from Recovery

So long as the debtor is paying unsecured creditors what chapter 13 requires, the debtor is not obliged to pursue preferences.

Claims Discharged in Chapter 7 Revive If the Case Is Converted to Chapter 13

Courts are split over the effect on claims discharged in chapter 7 if the debtor converts the case to chapter 13.

District Court Limits Bankruptcy Judges’ Ability to Enact Local Rules

Local rules may not impose confirmation requirements beyond those contained in the statute.

Judges Split on Denial of Chapter 13 Discharge for Missing Direct Mortgage Payments

Illinois judges disagree on whether direct payments to a mortgagee are “under the plan” and must be made in full to obtain a chapter 13 discharge.

Rule 9(b) Fraud Pleading Standards Don’t Apply to an FDCPA Complaint

Willfulness is not required by the FDCPA when pleading an automatic stay violation.