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northern district of illinois

Takena USA LLC v. Fisher

Ruling
Bankruptcy court properly appointed receiver in case involving allegedly fraudulent transfers of intangible assets.
Procedural posture

Appellee chapter 7 trustee filed an application in the bankruptcy court for appointment of a receiver to monitor the operations of appellant, the purchaser of assets that had belonged to a chapter 7 debtor. The bankruptcy court granted the application and waived the bond requirement under 735 Ill. Comp. Stat. 5/2-415(a). The purchaser appealed.

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opinion summary, case decided on August 31, 2006 , LexisNexis #1006-061

Heartland Direct v. Chevron U.S.A. Inc.

Ruling
Cause of action for breach of contract that accrued prior to filing was property of the state and could only be brought by trustee unless abandoned.
Procedural posture

Plaintiff, an Illinois promotional products company, filed a breach of contract action against defendant, a Pennsylvania corporation. The company alleged that the corporation breached the parties'contract, pursuant to which it provided promotional products and offers to the corporation's credit card customers. The corporation moved to dismiss the complaint pursuant to Fed. R. Civ. P. 12(b)(1) and (6).

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opinion summary, case decided on August 30, 2006 , LexisNexis #0906-090

Cross v. K.B. Toys

Ruling
Debtor's EEOC claim arising postpetition but pre-confirmation did not survive confirmation and was discharged.
Procedural posture

Plaintiff terminated employee filed a pro se employment discrimination suit against defendant former employer, alleging that she was retaliated and discriminated against due to her sex in violation of her rights under Title VII of the Civil Rights Act of 1964 (Title VII). The employer moved for a judgment on the pleadings pursuant to Fed. R. Civ. P. 12(c).

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opinion summary, case decided on August 22, 2006 , LexisNexis #0906-097

PRD LP v. Lopez (In re PRD LP)

Ruling
Bankruptcy court properly transferred venue from Illinois to Puerto Rico.
Procedural posture

Appellant limited partnership appealed from the bankruptcy court, and appellees, an estate, various individuals and contractors, opposed the appeal. The bankruptcy court had concluded that, pursuant to 28 U.S.C. § 1412, it was appropriate to transfer venue from the Northern District of Illinois to the District of Puerto Rico.

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opinion summary, case decided on August 22, 2006 , LexisNexis #0906-103

In re Rey

Ruling
Chapter 11 case converted to chapter 7 due to debtor's inability to fund or confirm plan.
Procedural posture

The unsecured creditors filed a motion to convert the debtors'substantially consolidated chapter 11 bankruptcy case to a chapter 7 case for cause under 11 U.S.C. § 1112(b); to dismiss the case; or to appoint a chapter 11 trustee.

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opinion summary, case decided on August 21, 2006 , LexisNexis #0906-132

In re Nevitt

Ruling
Schedule J was to be used to calculate projected disposable income for debtors below median family income.
Procedural posture

In companion chapter 13 cases, the standing chapter 13 trustee filed motions to dismiss the plans of debtors. The issue was whether Schedule J or Form B22C should be used to calculate "projected disposable income" for the debtors, whose earnings fell below the median family income, to be determined in accordance with 11 U.S.C. § 1325(b)(2).

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opinion summary, case decided on August 18, 2006 , LexisNexis #0906-010

In re Colvin

Ruling
Court approval not necessary for debtors' attorneys' fees to be collected from personal postpetition income pursuant to postpetition agreement.
Procedural posture

The chapter 7 debtors'law firm filed a motion for attorney fees under 11 U.S.C. § 330.

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opinion summary, case decided on August 15, 2006 , LexisNexis #1106-019

In re Turnbull

Ruling
Plan modified solely to allow auto insurance proceeds to be credited against insurer's claim.
Procedural posture

Debtor husband and wife filed a bankruptcy case under chapter 13. After their amended chapter 13 plan was confirmed, their vehicle was involved in an accident and deemed a total loss. The secured creditor received the insurance proceeds and applied them to its secured claim. The debtors then filed a motion to modify the chapter 13 plan.

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opinion summary, case decided on August 11, 2006 , LexisNexis #0906-035

In re Wiggs

Ruling
Objection to confirmation was sustained since plan did not provide for full payment of all unsecured debts.
Procedural posture

The matter was before the court on the motion to dismiss and objection to confirmation brought by the standing chapter 13 trustee. The matter involved debtors who owned two vehicles but did not incur expenses for payment of a note. The trustee objected to the ownership expense for two vehicles for which they had no loan or lease. Debtors relied upon 11 U.S.C. § 1325(b) and the case implicated 11 U.S.C. § 707(b)(2)(A)(B).

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opinion summary, case decided on August 04, 2006 , LexisNexis #0806-075

In re Kobus

Ruling
Conversion to chapter 13 denied for lack of good faith.
Procedural posture

The debtor filed a motion to convert her chapter 7 case to a chapter 13. The chapter 7 trustee objected. He alleges that the debtor failed to disclose that she transferred property to her father within one year of filing for bankruptcy relief. The debtor's motion followed the trustee's discovery of the transfer.

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opinion summary, case decided on August 03, 2006 , LexisNexis #0906-045