Publications

Section Newsletter Articles on Bankruptcy

Distress for rent By Robert G. Markoff Commercial Banking, Collections, and Bankruptcy, December 2015 Although very rare today, Distress for Rent is still a useful cause of action in the right circumstances.
JPMorgan’s unfortunate loss of $1.5 billion: Security interests versus a bankruptcy discharge By Christine M. Kieta Corporate Law Departments, December 2015 Secured transactions are about exciting as a piece of paper. But they touch almost every person and every business that has debt. Sometimes it is secured. Sometimes it is discharged. So what happened to JPMorgan?
Purchasers of properties that have gone through judicial sale should be cautious By Adam M. Ansari Commercial Banking, Collections, and Bankruptcy, December 2015 The Illinois Appellate Court in Concord Air v. Malarz has increased the due diligence necessary for properties that have gone through a foreclosure sale.
Alternative methods of forced sales of debtors’ property By Robert G. Markoff Commercial Banking, Collections, and Bankruptcy, October 2015 Since sheriff sales may not garner the seller an item's full value, the author provides a list of other venues available for selling items.
Case summaries By Robert T. Bruegge Commercial Banking, Collections, and Bankruptcy, October 2015 Recent bankruptcy cases of interest.
Think asbestos bankruptcy trusts equals easy money? Think again! By Martin J. Mengarelli Tort Law, August 2015 To maximize a claim against a bankruptcy trust, it must be worked up like any other defendant in a personal injury suit.
Judicial “es-top-pel”—Bankruptcy debtors beware By Patrick M. Kinnally Civil Practice and Procedure, June 2015 Judicial estoppel applies in cases where a debtor claims an asset not revealed in a bankruptcy filing, and his omission may or may not preclude him from seeking compensation on a viable state law tort claim.
Wage rage: The argument for why confirmation is unnecessary to attach wages with a citation to discover assets after obtaining a judgment by confession By Michael G. Cortina Commercial Banking, Collections, and Bankruptcy, March 2015 What should happen if a judgment creditor issues a citation to discover assets to the debtor’s employer and finds wages that could be used to satisfy the judgment? Does the creditor have to confirm the judgment by confession now that wages have been discovered?
Citations to discover assets and the automatic stay By Kim M. Casey Commercial Banking, Collections, and Bankruptcy, January 2015 Two recent bankruptcy court decisions confirm that while the automatic stay of Section 362 operates to prevent any further state court proceedings to enforce the pending Citation, it does not create an affirmative duty upon the creditor that the Citation be dismissed immediately upon the filing of a bankruptcy.
Spendthrift Trust beneficiary checkmated by Bankruptcy Code 548(e) in Castellano By Jay Adkisson Trusts and Estates, September 2014 If the Court’s rationale is followed in future cases, millions of existing trusts may be defective as to the operation of their Spendthrift Clause, if the Trust may be deemed to terminate immediately upon the death of the Settlor.
Bankruptcy, divorce and judicial estoppel By James Hanauer Family Law, August 2014 What should you do when a spouse files a petition for bankruptcy during a divorce proceeding?
The United States Bankruptcy Code does not discriminate against non-citizens By Maura K. McKeever International and Immigration Law, December 2013 Unfortunately, non-citizens who are faced with overwhelming debt are often reluctant to file for bankruptcy for fear that the bankruptcy petition will negatively impact their immigration status or application for citizenship. Ordinarily, however, filing for bankruptcy does not impact an individual’s immigration status or application for citizenship
Protecting contractor rights in bankruptcy By Samuel H. Levine Commercial Banking, Collections, and Bankruptcy, August 2013 A discussion of the bankruptcy issues most often encountered in the construction setting.
Is an Illinois resident’s inherited IRA protected from bankruptcy creditors? By David F. Rolewick and Justin J. Karubas Trusts and Estates, July 2013 There is a split in the circuits regarding whether or not inherited IRAs are protected from bankruptcy creditors. The Fifth Circuit has held that a Texas resident’s inherited IRA is protected from bankruptcy creditors. The Seventh Circuit has held that a Wisconsin resident’s inherited IRA is not protected from bankruptcy creditors. Both Wisconsin and Texas have not opted out of the bankruptcy exemptions. Therefore, federal bankruptcy exemptions apply.
Bankruptcy issues relating to personal injury cases By Brett J. Swanson Commercial Banking, Collections, and Bankruptcy, August 2012 In the recent case of Berge v. Kuno Mader and DMG America, Inc., the First District found that the doctrine of judicial estoppel bars a plaintiff from proceeding with a cause of action in state court where the plaintiff fails to disclose the action as an asset in a bankruptcy petition.
Options for the client in trouble with real estate: Forbearance to bankruptcy and everything in between By Erica Crohn Minchella Commercial Banking, Collections, and Bankruptcy, July 2012 A competent real estate attorney evaluates each client’s circumstances in light of various interests and perspectives and offers sound advice. But with so many factors and circumstances, how do we ensure we firmly grasp the specific needs of each client?
Tax issues facing the individual Chapter 11 debtor By Nancy Franks-Straus Commercial Banking, Collections, and Bankruptcy, July 2012 A look at the income tax issues facing an individual filing Chapter 11.
Bankruptcy issues relating to personal injury cases By Brett J. Swanson Tort Law, May 2012 In the recent case of Berge v. Kuno Mader and DMG America, Inc., the First District found that the doctrine of judicial estoppel bars a plaintiff from proceeding with a cause of action in state court where the plaintiff fails to disclose the action as an asset in a bankruptcy petition.
Options for the client in trouble with real estate: Forbearance to bankruptcy and everything in between By Erica Crohn Minchella Real Estate Law, February 2012 A competent real estate attorney evaluates each client’s circumstances in light of various interests and perspectives and offers sound advice. But with so many factors and circumstances, how do we ensure we firmly grasp the specific needs of each client?  
Tax issues facing the individual Chapter 11 debtor By Nancy Franks-Straus Federal Taxation, February 2012 A look at the income tax issues facing an individual filing Chapter 11.
Apparently, “head-in-the-sand” is not a valid defense By Jeffrey A. Mollet Commercial Banking, Collections, and Bankruptcy, November 2011 The recent case of U.S. v. Buchman gives practitioners guidance on what not to do to prove your case.
Recent decisions limit bankruptcy claims of PRP groups By Michele Gale Environmental Law, September 2011 The successful application of the Chemtura and Lyondell decisions to PRP claims in the Motors Liquidation Company bankruptcy could result in increasing the remediation obligations of other PRPs.
Protecting clients from danger in a 1031 Safe Harbor By Jack H. Tibbetts Real Estate Law, June 2011 The IRS regulation 2010-14 is a welcome safe harbor for solving some of the confusion and taxation issues when a Qualified Intermediary in a 1031 exchange files for bankruptcy protection or is subject to a receivership proceeding.
Selected developments in ag law By Donald L. Uchtmann Agricultural Law, May 2011 Five interesting developments involving farmers' forward contracts, the Illinois Grain Insurance Fund, livestock and the Agricultural Exemption to the Illinois Workers' Compensation Act.
Illinois local governments filing for Chapter 9 bankruptcies By W. Britt Isaly Local Government Law, December 2010 Chapter 9 bankruptcy is now available to eligible units of local governments, by way of the “specific authorization” section of the Bankruptcy Code, Section 109(c).
Comparable sales are admissible to establish whether bankruptcy sales reflect market value By Timothy E. Moran State and Local Taxation, August 2010 Author Tim Moran's summary of the Calumet Transfer v. PTAB case.
Dischargeability of child representative and guardian ad litem fees in bankruptcy By Arthur W. Rummler Child Law, March 2010 This article will review the dischargeability of certain divorce-related debts and explore a recent decision that applies the amended law to dischargeability of child representative and guardian ad litem fees incurred during a divorce case.
Environmental cleanup claims survive bankruptcy: US v. Apex Oil Co., Inc. By Raymond T. Reott and Becky J. Schanz Commercial Banking, Collections, and Bankruptcy, March 2010 Courts have issued conflicting opinions on whether claims for injunctions ordering the cleanup of environmental contamination are discharged in a bankruptcy proceeding.
In re Kucharz: Unemployment compensation included in a debtor’s “current monthly income” calculation although it is a “surprisingly difficult question” By Brent Wilson Commercial Banking, Collections, and Bankruptcy, March 2010 Should unemployment compensation be included in the "current monthly income" calculation? With the decision in In re Kucharz, Illinois Bankruptcy Courts are now evenly split on the issue with two courts ruling yes, two ruling no.
This is the ordinary course of business? Defenses to a preference action under 547(c)(2) By Lawrence O. Taliana Commercial Banking, Collections, and Bankruptcy, March 2010 A review of the basic cases related to arguing an “ordinary business terms” defense under 547(c)(2)(B) of the BAPCPA.