Under Illinois and federal law, a pension plan that is organized in Canada does not meet the definition of a qualified retirement plan and may not be exempted from the debtor’s bankruptcy estate. In re Green, No. 21-6189 (Bankr. N.D. Ill. March 9, 2022). The debtor sought to exempt from his bankruptcy estate his $72,300 […]
Author Archives: NCBRC
Changes to Bankruptcy Code Dollar Amounts
March 18, 2022 – 12:57 pm
Certain dollar amounts in the U.S. Bankruptcy Code will increase effective April 1, 2022, pursuant to 11 U.S.C. §104. On February 4, 2022, the Judicial Conference of the United States announced and detailed these changes in The Federal Register. See Adjustment of Certain Dollar Amounts in the Bankruptcy Code, 87 Fed. Reg. 6625 (February 4, 2022). […]
Interest Rate on Tax Debts
March 14, 2022 – 2:08 pm
Illinois Property Tax law provides an interest rate of 18% for tax debts where the debtor does not intend to redeem the property, even where the debt is owned by tax purchaser at the time of the debtor’s chapter 13 petition. In re Drake, No. 21-4903 (Bankr. N.D. Ill. Feb. 23, 2022). The debtor failed […]
Trustee in Dismissed Case May Keep Pre-Confirmation Fees
March 8, 2022 – 1:10 pm
In a cursory opinion, the District Court for the Eastern District of New York, found the chapter 13 trustee was entitled to retain his statutory fees despite the fact that the debtor’s bankruptcy was dismissed prior to confirmation. Soussis v. Macco (In re Soussis), No. 20-5673 (E.D.N.Y. Jan. 24, 2022) (online publication only).
Costs of Attorney Disciplinary Proceeding Not Dischargeable
March 1, 2022 – 1:43 pm
An order by the state that a lawyer pay the costs of the regulatory authority’s action against him for professional misconduct was penal rather than compensatory for purposes of nondischargeability. Osicka v. Office of Lawyer Reg., No. 21-1556 (7th Cir. Feb. 7, 2022). The chapter 7 debtor, a Wisconsin lawyer, was subjected to disciplinary proceedings […]
Debtor May Reopen Case 8 Years after Closing to Seek to Avoid Liens
February 22, 2022 – 2:24 pm
There was “cause” to permit the debtor to reopen his chapter 7 bankruptcy eight years after closure to allow him to move to amend his schedules, claim a homestead exemption and avoid judicial liens, where there was no evidence that reopening would cause undue prejudice to any party and the debtor’s quest was not clearly […]
Debtor May Avoid Transfer under § 522(h) when § 522(f) Not Available
February 16, 2022 – 1:42 pm
A debtor may avoid a judgment lien impairing her homestead exemption under section 522(h) even though she did not meet the requirements for lien avoidance under section 522(f). In re Garbo, No. 21-11053 (Bankr. W.D. N.Y. Jan. 27, 2022). Prior to filing for chapter 7 bankruptcy, the debtor and her husband divorced. Their divorce settlement […]
Split on Chapter 13 Trustee Retention of Fees in Unconfirmed Cases Deepens
February 14, 2022 – 1:28 pm
Deepening the split among lower courts, in McCallister v. Evans, et al., No. 20-112 (D. Ida. Feb. 8, 2022). Chief Judge Nye of the District of Idaho, held that the chapter 13 trustee is entitled to retain her commission on funds collected from the debtors even though the debtors’ case was dismissed prior to confirmation. […]
Calculating Values for 109(e) Bankruptcy Eligibility
February 10, 2022 – 5:16 pm
In the face of a good faith challenge to the debtors’ eligibility for chapter 13 bankruptcy under section 109(e), the bankruptcy court considered evidence beyond the debtors’ schedules and conducted its own eligibility calculation. In re Beach, 2022 Bankr. LEXIS 313, Case no. 21-10762 (Bankr. D. N.M. Feb. 7, 2022).
Discharge of Judgment Related to Ponzi Scheme
February 7, 2022 – 6:56 pm
A judgment against the debtor based on fraudulent transfer of funds arising out of his gains in a Ponzi scheme was dischargeable where the court found that only a debt traceable to a securities law violation committed by the debtor is excepted from discharge under section 523(a)(19) and the debtor in this case was not […]
