Illinois Northern District

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.

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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.

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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.

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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.

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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.

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Converting from Chapter 7 to Sub V to Liquidate Is Ok, Judge Cleary Says

A corporate debtor with no income and no operating business could convert an involuntary chapter 7 case to Subchapter V of chapter 11.

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Chicago District Judge Decides that Sub V Debtors Can Have Nondischargeable Debts

Reversing the bankruptcy court, the Chicago district judge follows the Fourth and Fifth Circuits and rejects a contrary holding by the Ninth Circuit BAP.

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Judge Thorne Describes the Quantum of Evidence Needed to Show a Plan Is Fair and Equitable

Although a ‘true-up’ cannot be imposed, a debtor could employ a ‘true-up’ to confirm an otherwise nonconfirmable plan.

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Judge Barnes Explained Why Bankruptcy Stays Don’t Require Personal Jurisdiction

Chicago’s Bankruptcy Judge Timothy Barnes explained eight years ago why bankruptcy stays do not require personal jurisdiction, unlike injunctions in receiverships.

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