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.
Subscribe to All OpinionsJudge Carol A. Doyle
January 20, 2011
Judge Jacqueline P. Cox
January 11, 2011
04 B 17796, 10 A 01455
In this adversary proceeding, the court found that the County violated the discharge injunction under 11 U.S.C. § 1328(a) by failing to release its lien on Debtors’ property by continuing to assess interest and penalties and selling the property taxes at a tax sale. The County argued that its lien against Debtors’ property was an in rem lien, and as such the discharge eliminated Debtors’ personal liability only, and that the in rem debt for real estate taxes remains after discharge. The court found in favor of the Debtors, and held that the County’s lien on Debtors’ property is a “claim” within the meaning of 11 U.S.C. § 101(5) and further held that the provisions of Debtors’ confirmed plan are binding pursuant to 11 U.S.C. § 1327(a). The court noted that the County failed to object to the proposed treatment of its tax claim prior to plan confirmation, and that the County acted improperly when it assessed additional interest on the tax debt and sold the taxes at a tax sale after the Debtors completed the payments required by the plan and the entry of the chapter 13 discharge that covered the tax debts.
Judge Jack B. Schmetterer
December 17, 2010
December 7, 2010
09 B 29262, 09 A 01132
Creditor obtained a prepetition judgment and served a citation to discover assets on Debtor. While the Citation was in effect, Debtor disposed of certain funds from his bank account for ordinary living expenses. Debtor asserted an exemption in his bank account. Creditor claimed his debt was excepted from discharge under 11 U.S.C. § 523(a)(6) for willfully and maliciously damaging Creditor’s property interest by spending funds in violation of the Citation and objected to Debtor’s claim of exemption because Debtor had exhausted his exemption with respect to Creditor by spending funds prepetition. The court held that there was no evidence Debtor consciously intended to violate the Citation, given its complexity and the fact that Creditor was aware Debtor had been spending funds and failed to object. The court further held that Debtor did not exhaust his exemption by spending funds prepetition as state exemptions and bankruptcy exemptions serve different purposes and Creditor’s debt did not fall within a creditor-specific exception to Debtor’s exemption.
December 7, 2010
10 B 22637
Creditor in a single asset real estate case obtained a prepetition state court judgment against Debtor with a judgment interest rate of 9%. As a single asset real estate debtor, Debtor was required to commence monthly payments to Creditor in an amount equal to “interest at the then applicable nondefault contract rate of interest on the value of the creditor’s interest” in the collateral. 11 U.S.C. § 362(d)(3)(B)(ii). The mortgage between Creditor and Debtor specified a nondefault contract rate of interest of 5.990%. Creditor argued that the judgment replaced the contract, making 9% the only applicable interest rate. Furthermore, Creditor argued that the payments must first be applied to interest, even though Creditor was undersecured. The court held that the judgment interest rate does not replace the nondefault contract rate of interest for the purposes of 11 U.S.C. § 362(d)(3)(B)(ii) and that the payments applied to principal because Creditor was undersecured.
Chief Judge A. Benjamin Goldgar
October 27, 2010
09 B 20289, 10 A 00001