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ABI Journal

7th Circuit

Chicago Believes that Inaction Doesn’t Violate the Automatic Stay

Windy City plunges into the circuit split on inaction as a violation of the automatic stay.

Inventory Liens Always Prevail over Reclamation Claims, Indianapolis Judge Says

BAPCPA amendments were a mess but cleaned up one issue on reclamation, according to Judge Graham.

Chicago Strikes Out on Priority Status for Post-Petition Parking Fines

Clever drafting of chapter 13 plans prevents collection of post-petition parking fines.

Courts Split on Whether Claims for Overpayments of DSOs Are Themselves DSOs

Status of claims for overpayment of domestic support obligations begs for appellate review.

The Unlimited Wedding Ring Exemption Has Some Limits, Illinois Judge Says

Opinion traces the thousand-year history of wedding and engagement rings.

Debtor Can’t Reaffirm an Auto Loan by Waiving Discharge of the Debt

Chief Judge Gorman requires strict adherence to Section 524(c) in reaffirming a debt.

Seventh Circuit Opines on Method for Calculating ‘New Value’ Defense

Average daily sales suffice to show the date when new value was advanced.

Reperfecting a Mortgage Isn’t Grounds for a Fraudulent Transfer

Mistakenly cancelling a mortgage can result in a preference but not a fraudulent transfer if the cancellation is later rescinded.

Existence of a Committee Precludes Tolling the Statute for Adverse Domination

The statute is tolled only if the creditors’ committee is denied standing to sue.