Opinions

The District of Northern Illinois offers a database of opinions for the years 1999 to 2013, listed by year and judge. For a more detailed search, enter the keyword or case number in the search box above.

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Judge Jack B. Schmetterer

11 B 43629, 12 A 00165

Judge Janet S. Baer

12 B 26203, 12 B 21218

Tax purchasers moved for relief from the automatic stay to continue with their petitions for issuance of a tax deed in the Circuit Court of Cook County. The issue before the Court was whether the debtors in these two cases could cure delinquent property taxes through their chapter 13 plans even though the redemption periods expired during pendency of the bankruptcy cases. The Court acknowledged the split of authority in this jurisdiction concerning the interplay between 11 U.S.C. § 1322(b)(2) and 11 U.S.C. § 108(b), as well as the nature of a tax purchaser’s interest arising out of the Illinois tax sale procedure. Agreeing with the recently issued opinion in La Mont, the Court found that the debtors could provide for payment of the purchasers’ claims in installments through their chapter 13 plans. Accordingly, the Court denied the tax purchasers’ motions.

12 B 12318

The debtors filed a motion to avoid a judicial lien pursuant to section 522(f)(1)(A). The parties did not dispute that the debtors could avoid the lien. The sole issue–one on which there is no binding case law in the Seventh Circuit–was whether the debtors must complete their chapter 13 plan and receive a discharge before the lien is avoided and the creditor is required to release the lien. Agreeing with the majority view, the Court found that in light of the creditor’s objection, the lien avoidance will not be effective until the debtors make all plan payments and obtain a discharge. Accordingly, the Court conditionally granted the debtors’ motion to avoid the judicial lien, provided that they completed their chapter 13 plan and received a discharge in the bankruptcy case.

Judge Jacqueline P. Cox

11 B 40944 (jointly administered)

In this memorandum opinion, the Court denied confirmation of the Debtor’s Amended Plan of Reorganization. The Court noted that to satisfy the Bankruptcy Code’s requirement that the Debtor’s Plan be fair and equitable, a plan must propose an interest rate adequate to assure the realization of the Bank’s claim. In this case, the Court determined that the interest rate advanced by the Debtor did not sufficiently capture the risk that the Debtor would not satisfy the Bank’s claim. The Court also determined that the Plan was not feasible because the Debtor failed to prove that the property would increase in value enough to give the Debtor sufficient equity to facilitate refinancing at the end of 7 years to fund a balloon payment to the Bank. The Court also granted the Bank’s request for relief from the automatic stay because the Debtor failed to show that there is a reasonable possibility of a successful reorganization.

Judge Donald R. Cassling

12 B 11838

Judge A. Benjamin Goldgar

12 B 26800, 12 A 01464

Judge Timothy A. Barnes

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