Illinois

Chicago Judge Writes a Primer on Recharacterization and Equitable Subordination

Insiders were protected in making loans to a failing company.

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Chapter 13 Debtor Held to Lack Standing to Prosecute a Claim on an Exempt Asset

Judge fails to distinguish between cases in chapter 7 and chapter 13.

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Chapter 13 Debtors May Prorate Tax Refunds in Calculating Plan Payments

Chapter 13 trustees aren’t always entitled to a turnover of tax refunds.

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Allowing WARN Claims in Liquidating Chapter 11s, Chicago Judge Splits with Third Circuit

Judge adheres to plain language of agency commentary as though it were a statute.

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Explicit Provision Required to Maintain Secured Status in a Plan

Creditor lost secured status by sloppy drafting.

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Lawyers Can Violate FDCPA by Making Factually Inaccurate Allegations in Bankruptcy Pleadings

There is no litigation privilege in the FDCPA for inaccurate allegations in bankruptcy court.

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District Judge Splits with Third Circuit on Recoupment and Social Security Overpayment

Social Security benefits were properly cut off to recover overpayment.

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D’Oench Duhme Gives FDIC Broad Protection from Fraudulent Transfer Suits

Bank need not be a party to a secret agreement for D’Oench Duhme defense to apply.

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State Consumer Protection Law Preempted by the Bankruptcy Code

Preemption easier to find than implied repeal, Chicago district judge says.

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