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Articles on Bankruptcy

Johnson & Johnson Kicked From Bankruptcy: Plaintiffs May Finally Get Their Day in Court By Judith Conway Young Lawyers Division, February 2023 A summary of LTL Management's Chapter 11 case, which was thrown out by the third circuit last month.
Johnson & Johnson Kicked From Bankruptcy: Plaintiffs May Finally Get Their Day in Court By Judith Conway Tort Law, February 2023 A summary of LTL Management's Chapter 11 case, which was thrown out by the third circuit last month.
By the Numbers: Overall Bankruptcy Down 40 Percent By Julia Smolka Commercial Banking, Collections, and Bankruptcy, November 2021 Despite concerns at the beginning of the pandemic that attorneys who work in bankruptcy and collections courts would be flooded with too many cases, bankruptcies have stayed at historic lows.
One of the best ways to help your client: Keep bankruptcy from being a paper chase By Cindy M. Johnson Commercial Banking, Collections, and Bankruptcy, March 2018 If your actions delay the trustee’s administration of the case, you have created an impression in the trustee’s mind that you are inattentive— and so a trustee may wonder what else your inattention caused you to miss.
Returning to the fray after discharge By Michael G. Cortina Bench and Bar, January 2018 The “return to the fray” doctrine is a little-known theory that could result in harsh consequences for debtors that receive a discharge in bankruptcy, but choose to continue litigating post-discharge against creditors or other entities.
Bankrupt widows and widowers beware: In re Jaffe, is out there By David A. Zulkey Real Estate Law, November 2017 This case ultimately holds that death of a spouse terminates any interest held in a tenancy-by-the-entirety and, therefore, prohibits that interest in said property from being exempt from collection by a creditor under the Bankruptcy Code and Illinois law.
“Actual fraud” and the discharge of certain debts in bankruptcy By Jeffrey A. Mollet Agricultural Law, September 2016 In Husky International Electronics, Inc. v. Ritz, the Supreme Court’s decision settles a split among certain Circuits as to whether “actual fraud” under §532(a)(2)(A)3 of the Bankruptcy Code requires the debtor to make a false representation, or whether the exception is applicable in the absence of such a false representation where the debtor benefited from a deliberate fraudulent transfer or a fraudulent conveyance scheme.
Banks, bankruptcy and setoff: What can a bank do when an account holder files for bankruptcy? By Bradley W. Small & Amy Randazzo Commercial Banking, Collections, and Bankruptcy, May 2016 A bank has a common law right to setoff, and indeed usually includes setoff language in its various agreements with its account holders, but how effective are these when bankruptcy is involved?
Revocable living trust, tenancy by the entirety, and a little loss of privacy By Michael J. Maslanka Real Estate Law, April 2016 As a result of Loventhal v. Edelson, bankruptcy attorneys should be sure to list the tenancy by the entirety exemption on Schedule C of the bankruptcy petition, and real estate attorneys should be reminded to have both spouses sign any deed conveying their property to themselves as tenants by the entirety, whether in a trust or otherwise.
You cannot go bankrupt selling marijuana! By Thomas E. Howard Commercial Banking, Collections, and Bankruptcy, March 2016 Marijuana is an asset that cannot be administered for the benefit of creditors. Administering the marijuana assets is a criminal violation of federal law.
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.
2 comments (Most recent December 30, 2015)
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 & 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.
1 comment (Most recent May 19, 2012)
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.

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