7th Circuit

Judge Furay Sides with the Minority on Stay Termination After a Repeat Filing

Courts are divided on whether automatic stay termination in Section 362(c)(3) applies to property of the debtor’s estate.

Court :

Wisconsin Western District

Wisconsin

In ‘13,’ a Creditor Wanted Debtors’ Counsels’ Fees to Come Last, Not First

Chicago’s Bankruptcy Judge Donald Cassling nixed an idea that would have made chapter 13 unpalatable for debtors’ counsel.

Court :

Married Immediately Before Bankruptcy, the ‘Household’ Is Two, Not One

Wife who contributed nothing toward household expenses is still counted as part of the ‘household,’ Chicago’s Judge Slade says.

Court :

Arbitration in Bankruptcy Isn’t All or Nothing, Judge David Cleary Says

Chicago’s Judge David Cleary called for post-confirmation arbitration of claims between the debtor and a creditor, but no arbitration for the creditor’s defenses, raising questions of bankruptcy law.

Court :

Class Actions: The Answer for Stay Violations with Small Damages for Each Debtor

A class action in Chicago will decide whether bankruptcy judges have the tools to rectify a single creditor’s violation of the rights of similarly situated debtors.

Court :

For Fraudulent Transfers, Retailers Needn’t Police Who Receives Value from the Purchase

Judge Peter Henderson declined to adopt an interpretation of Section 548 that would turn innocent retailers into recipients of fraudulent transfers when someone buys goods but turns the goods over to someone else.

Court :

Illinois Central District

Chicago Judge Devises a Better Method to Allocate Income Tax Refunds Between Spouses

Whoever was overwithheld is entitled to the IRS refund when one spouse doesn’t file, Judge Michael Slade says.

Court :

Forbearance Agreement Wasn’t an Enforceable Waiver of the Automatic Stay

Bankruptcy Judge Laura Grandy (politely) faulted other federal courts for failing to follow the Illinois mortgage statute and decisions by the Illinois Supreme Court.

Court :

Illinois Southern District

Companies Can Be ‘Bankruptcy Remote,’ if Properly Done

Bankruptcy Judge David Cleary wrote a manual on how a company can be ‘bankruptcy remote’ without violating public policy.

Court :