The Automatic Stay Is a Get-Out-of-Jail Free Card in Chicago
The Seventh and Ninth Circuits may not be on the same page when it comes contempt citations falling under the Section 362(b)(4) exception to the automatic stay.
Seventh Circuit Bars ‘Objector Blackmail’ in a Class Settlement
The Seventh Circuit uses broad equitable powers to prevent one member of a class from receiving a settlement when appealing an issue applicable to the entire class.
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Seventh Circuit Requires Court Findings for a Plan Provision the Code Allows
The Seventh Circuit opinion raises the question of whether (or when) a court may restrict the use of a provision in a chapter 13 plan that Section 1322(b) permits.
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Force Majeure Clause Cut an Illinois Debtor’s Rent by 75%
Chicago judge cut rent by 75% after governor prohibited on-premises dining in the debtor’s restaurant.
Farmers in Chapter 12 Don’t Qualify for PPP ‘Loans,’ Milwaukee Judge Rules
A PPP ‘loan’ under the Cares Act isn’t a ‘grant,’ thus the government isn’t barred from discriminating against a bankrupt under Section 525(a).
Another Case Shows the Need to Provide Remedies for Discharge Violations
Discharge was violated, but sanctions are likely out of reach.
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Must a Debtor Be Destitute Before Discharging Student Loans?
Unemployed for 16 months, surviving on food stamps, and living rent-free enabled a debtor to discharge student loans.
Seventh Circuit: Reclamation Claims Are Subordinate to DIP Financing
The 2005 amendments to Section 546(c) departed from state law under UCC § 2-702 by creating a federal rule making reclamation claims subordinate to existing secured claims and DIP financing.
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PACA Doesn’t Give Rise to Denial of Discharge for Defalcation, Chicago Judge Says
A PACA trust lacks the hallmarks of a trust, so a failure to pay a produce supplier doesn’t give rise to a nondischargeable debt for defalcation while acting in a fiduciary capacity, Judge Goldgar says.
Even a $3 Million Claim for Severance Is Exempt in Illinois as Wages, Easterbrook Says
Pleas to injustice and unfairness failed to persuade the Seventh Circuit to depart from a state law exemption for wages.
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