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Hon. Mary P. Gorman

ACJK, Inc. v. Aetna Health Mgmt., LLC and ACJK, Inc. v. CVS Health Corp. 02/23/2026

Adversary Nos. 25-03000 (Southern District of Illinois) and 25-03008 (Southern District of Illinois)

Case No. 23-30045 (Southern District of Illinois)

Motions to dismiss complaint and compel arbitration denied where the causes of action asserted were derived from the Bankruptcy Code and could only be brought by trustee or debtor in possession on behalf of the Debtor's creditors. Because neither the creditors nor the trustee in whose shoes the Debtor was standing were parties to the Debtor's prepetition agreement to arbitrate disputes, they were not bound by the agreement and the Debtor therefore could not be compelled to arbitrate the claims asserted on their behalf.

 

ACJK, Inc. v. Humana Pharmacy Solutions, Inc. 02/20/2026

Adv. No. 25-03009 (Southern District of Illinois)

Case No. 23-30045 (Southern District of Illinois)

Defendant's Rule 12(c) Motion for Judgment on the Pleadings denied. The Motion for Judgment on the Pleadings raised issues substantially the same as those decided in denying the Defendant's prior motion to dismiss. In the absence of any compelling argument to the contrary, the law-of-the-case doctrine precluded the relief sought in the Motion for Judgment on the Pleadings. 

Fed. R. Civ. P. 12(c), 54(b).

One Main Development, LLC 01/16/2026

Case No. 23-90402

Creditor filed motion to alter or amend order denying modification of protective order pursuant to Federal Rule of Civil Procedure 59(e). The motion to alter or amend was denied because it failed to identify manifest error and instead sought to relitigate old matters by rehashing arguments previously made and advancing new or modified legal theories and factual assertions that could and should have been made earlier. Further, although framed as seeking relief from one order, the motion was essentially a request for the Court to reconsider a different order entered two months earlier.

Fed. R. Civ. P. 59(e)

Fed. R. Bankr. P. 9023

Legacy Const. Servs., LLC v. Segobiano 01/15/2026

Adv. No. 25-07003

Case No. 25-70081

Defendant's motion to dismiss granted. Creditor of Chapter 7 debtor filed a four count complaint seeking to deny the debtor his discharge or, alternatively, to except the debt owed to it from the debtor's discharge. The complaint was dismissed because none of the counts were adequately pleaded in that they were comprised of legal conclusions, labels, and formulaic recitation of the elements of the causes of action. To the extent factual allegations were made, they were lumped into a large set of general, introductory paragraphs which were then incorporated en masse into each count without any indication of what facts were intended to support which count.

11 U.S.C. §§523, 727

Fed. R. Civ. P. 12(b)(6)

DeWitt L. Weary and Tamarra T. Weary 12/18/2025

Case No. 17-30503 (Southern District of Illinois)

Motion for relief from automatic stay filed by secured creditor denied as moot. The automatic stay was no longer in effect in individual Debtors' Chapter 11 case. Confirmed plan vested property of the estate in the Debtors and case was administratively closed years prior. To the extent the automatic stay had not terminated upon confirmation, it had terminated upon case closure. There was also no discharge or plan injunction requiring relief from the bankruptcy court. In the absence of a stay, the creditor was free to pursue remedies for the Debtors' default under the confirmed plan in any court of competent jurisdiction, making its motion for relief from stay unnecessary.

11 U.S.C. §§350, 362, 554, 1141

Fed. R. Bankr. P. 3022

Steven Dwayne Duby 12/08/2025

Case No. 24-90493

The Debtor's motion to convert his Chapter 7 case to one under Chapter 13 denied based on the Debtor's lack of regular and stable income required for purposes of eligibility to be a Chapter 13 debtor. The Debtor lacked regular income when he filed his Chapter 7 petition, when he filed his motion to convert, and at the time of the hearing on the motion. Although the Debtor's non-filing spouse had income and the Debtor asserted that he would soon begin employment working for a new business venture that his son was in the process of starting up, neither potential source of income was established as being regular and stable. Neither the Debtor's non-filing spouse nor his son provided sworn testimony as their willingness, ability, duty, or commitment to contribute to the Debtor's income. And no evidence, from the Debtor's son or otherwise, was presented as to the viability of the prospective business venture for purposes of providing the Debtor with regular and stable income. 

11 U.S.C. §§101(3), 109(e), 706(a) and (d)

Hughes v. Mims, et al. 10/31/2025

Adv. No. 25-07011

Case No. 25-70566

Defendants' motions to dismiss granted. Complaint filed by the Chapter 11 Debtor was never properly served on Alabama Defendants and failed to state plausible claims for relief. Several of the asserted causes of action further sought relief not available from this Court or properly considered by the Alabama state court in which litigation involving the same parties as well as others was pending. In addition to dismissing the adversary proceeding in its entirety, the Court abstained from hearing matters related to the Alabama litigation. To effectuate abstention, the Court also entered an order in the Debtor's Chapter 11 case sua sponte granting relief from the automatic stay.

11 U.S.C. §§105(a), 362(d), (k), 542

28 U.S.C. §§1334(c), 2201

Fed. R. Bankr. P. 7004, 7012

Fed. R. Civ. P. 4, 12

ACJK, Inc. v. Small Business Financial Solutions, LLC, and Rapid Financial Services, LLC 09/08/2025

Adv. No. 23-03026 (Southern District of Illinois)

Case No. 23-30045 (Southern District of Illinois)

Seven of eight counts of fourth amended complaint filed by Chapter 11 Debtor against creditor and related entity dismissed with prejudice. The Debtor asserted claims for breach of contract, equitable subordination, tortious interference with business expectancy, tortious interference with contract, negligent interference with business expectancy, fraudulent inducement, negligent misrepresentation, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act. The Defendants filed a motion to dismiss all counts. Only the breach of contract claim survived. The equitable subordination claim was dismissed for failure to plausibly allege harm to the Debtor's creditor body. The Debtor's state common law and statutory claims were governed by Maryland state law based on a choice-of-law contract provision, and the Debtor failed to plausibly set forth allegations that were actionable under applicable law. Dismissal was with prejudice based on the time and number of opportunities the Debtor had been given to set forth actionable claims with little improvement and at significant cost to the Defendants. The Court also found that amendment of some of the dismissed counts would be futile and that, in any event, the Debtor did not ask for an opportunity to amend further in the event of dismissal. 

Fed. R. Civ. P. 12(b)(6); Fed. R. Bankr. P. 7012

LPB MHC, LLC 07/10/2025

Case No. 24-40450 (Southern District of Illinois)

Chapter 11 Debtor's objections to claims filed by one creditor on behalf of other creditors sustained. Creditor who filed the claims was neither an agent nor assignee of claims of the non-filing creditors. Although the filing creditor contended that it was authorized to file the claims based on security given for a common debt allegedly owed to it by the Debtor and non-filing creditors, the loan and security documents relied upon did not support but rather undercut the filing creditor's assertions. The claims were accordingly disallowed.

11 U.S.C. §501

Fed. R. Bankr. P. 3001, 3004, 3005

810 ILCS 5/9-102, 5/9-108, 5/9-109, 5/9-203, 5/9-204

LPB MHC LLC v. Farmers State Bank of Alto Pass 06/26/2025

Adv. No. 25-04001 (Southern District of Illinois)

Case No. 24-40450 (Southern District of Illinois)

Defendant filed motion for summary judgment before any meaningful discovery could be taken. Plaintiff established a genuine dispute about material facts, and the limited record did not establish that Defendant was entitled to judgment as a matter of law. Summary judgment was therefore denied.

Fed. R. Civ. P. 56; Fed. R. Bankr. P. 7056 

Brett L.A. Long 06/05/2025

Case No. 24-71004

Annulment of the automatic stay granted for cause based on the Debtor's failure to give timely notice of his bankruptcy filing to creditor so that foreclosure sale of his residence that occurred in violation of the automatic stay could have been prevented. Alternative request for dismissal of case for bad faith denied.

11 U.S.C. §§362(d)(1) and 1307(c) 

Tammy Cook, Dean Kohn, Frank Lunn IV, and Francis Rathbun 05/12/2025

Case Nos. 23-70218, 23-70219, 23-70220, 23-90136

Motions for stay of related adversary proceedings pending appeals in bankruptcy cases granted in part. Movant appealed denial of stay relief to prosecute state court causes of action in California and asked for stay of adversary proceedings to determine dischargeability of potential liability in California case pending its appeals. The movant failed to meet its burden of showing likelihood of success on appeal, but, in the absence of objection from the debtors, the adversary proceedings were stayed for purposes of trial. The Court declined to stay discovery pending the appeals. Separately filed motions for permissive abstention that sought the same substantive relief as the motions for stay pending appeal were denied as moot.

 

Farm Credit Services of America v. Woodrum, Adv. No. 23-07036 02/24/2025

Case No. 23-70583

Debt arising from loan obtained using false written statements in loan application and supporting documents upon which creditor reasonably relied was excepted from the Chapter 7 debtor's discharge, but exception did not extend to debt arising from subsequent loan absent evidence that those same statements were used by the debtor to obtain and reasonably relied on by the creditor in making the second loan. The creditor failed to establish that either debt was incurred due to willful and malicious injury by the debtor as an alternate basis for excepting the debts from discharge.

11 U.S.C. §523(a)(2)(B), (6).

Tammy Cook, Dean Kohn, Frank Lunn IV, and Francis Rathbun 02/11/2025

Case Nos. 23-70218, 23-70219, 23-70220, and 23-90136

Motions for stay relief to proceed with litigation in California state court denied. Potential liability in state court action was the subject of pending adversary complaints to determine dischargeability of debts under §523(a)(2), (4), and (6). The bankruptcy court having exclusive jurisdiction over dischargeability issues and the movant not being entitled to a jury trial on those issues weighed heavily against granting stay relief.

11 U.S.C. §§362(d), 523(c)

Richardson v. Rohl, Adv. No. 24-09001 11/05/2024

Case No. 23-90322

Prepetition transfer of a portion of Debtor's share of proceeds from sale of marital home to ex-spouse as reimbursement for downpayment on purchase avoided by Trustee as constructively fraudulent because it was made within two years of the bankruptcy filing, while the Debtor was insolvent, and for less than reasonably equivalent value.

11 U.S.C. §§548(a)(1)(B), 550

Lisa A. Reilly 10/08/2024

Case No. 24-70349

Chapter 13 Trustee's objection sustained as to Debtor's claim of exemption in inherited IRA under Washington pension and retirement exemption law. Although Trustee did not dispute the Debtor's use of Washington State exemptions, the exemption provisions did not expressly exempt inherited IRAs and there was no evidence of legislative intent to the contrary or case law construing the Washington statute to protect inherited IRAs.

11 U.S.C. §522

RCW 6.15.020

ACJK, Inc. v. Small Business Financial Solutions, LLC, and Rapid Financial Services, LLC 09/04/2024

Adv. No. 23-03026 (Southern District of Illinois)

Case No. 23-30045 (Southern District of Illinois)

Adversary complaint filed by Chapter 11 Debtor against creditor and related entity dismissed in part with leave to replead. The Debtor asserted claims for breach of contract, promissory estoppel, avoidance of transfers as preferential and constructively fraudulent, and equitable subordination. Defendants moved to dismiss all counts for failure to state a claim upon which relief could be granted. Breach of contract count survived as to both defendants based in part on their admission of a valid contract in answer to previous iteration of complaint. Promissory estoppel count dismissed as to both defendants because the allegations relied on the existence of an express contract which would preclude relief under equitable principles. Preference avoidance count dismissed as to one defendant because the allegations did not support inference that the transfer was made to or for the benefit of or on account of a debt owed to that defendant. Count seeking to avoid transfer as constructively fraudulent dismissed as to both defendants because the Debtor received reasonably equivalent value for payment in the form of a dollar-for-dollar reduction of outstanding debt owed to the creditor defendant. And equitable subordination claim dismissed as to defendant that was not a creditor of the estate because it did not have a claim or interest to subordinate.

Fed. R. Civ. P. 12(b)(6); Fed. R. Bankr. P. 7012

11 U.S.C. §§510, 547, 548, 550

Gaither v. Judge, Adv. No. 23-07008 04/02/2024

Case No. 23-70015

State court award of attorney fees related to order of protection against debtor not excepted from her discharge under §523(a)(6). Attorney fees awarded in connection with order of protection are not excepted from discharge in bankruptcy as a matter of law; proof of willful and malicious injury is required. The state court orders at issue did not contain findings establishing that a willful and malicious injury occurred. The debtor was not barred from raising a defense to the action, and the plaintiff otherwise failed to meet his burden of proving that he was willfully and maliciously injured by her.

11 U.S.C. §523(a)(6)

Whitney J. Harding 03/05/2024

Case No. 22-70235

Chapter 7 Trustee's motion for turnover order and objection to the Debtor's amended claim of exemptions allowed in part. Debtor's amended schedules did not make evident what property was or was not being listed and claimed exempt given the information that was available to her and the traceability concerns stemming from her assets being converted to cash proceeds. As a result, the Debtor's amended claims of exemption were limited to the amounts scheduled.

11 U.S.C. §541(a)(1), (6)

Joel Jay Thomas and Deann Julie Thomas 02/14/2024

Case No. 23-70116

Attorney's conduct in representing Chapter 13 debtors, compounded by inadequacy of fee application, warranted denial of all compensation in the case.

11 U.S.C. §§329, 330, 526, 527, 528; Fed. R. Bankr. P. 1008, 2016, 9011 

James L. Ryan and Janice D. Ryan 01/31/2024

Case No. 23-70610

Chapter 7 Trustee's objection sustained as to Debtors' claim of exemption in Illinois residence under Texas homestead exemption law. Although Texas law was applicable to Debtors under §522, the Texas homestead exemption statute limits its use to property located within the state and could not be used to exempt property in Illinois.

11 U.S.C. §522

Tex. Prop. Code. §41.002(d)

Gargula v. Lewis, Adv. No. 23-07018 01/25/2024

Case No. 23-70120

Discharge denied where Debtor made false oaths in her bankruptcy petition, schedules, and creditors meeting testimony by failing to disclose several accounts and transactions and misrepresenting the completeness and accuracy of the disclosures she did make as part of a scheme to conceal her prepetition use of funds and hinder creditors and the Chapter 7 trustee.

11 U.S.C. §727(a)(2)(A) and (4)(A)

Richardson v. Reyes, Adv. No. 21-07035 11/30/2023

Case No. 21-70695

Prepetition transfer from the Debtor to significant other that rendered the Debtor insolvent and for which she did not receive a reasonably equivalent value was avoided as constructively fraudulent and recoverable by the Trustee.

11 U.S.C. §§548(a)(1)(B), 550

Riley N. Craig 10/23/2023

Case No. 23-70449

Actual damages, attorney's fees, and punitive damages awarded in favor of Debtor as sanction against creditor for willful and egregious violations of the automatic stay.

§362(a), (k)

Whitney J. Harding 08/25/2023

Case No. 22-70235

Chapter 7 Trustee's objection to the Debtor's claims of exemption in "Household Goods, "Electronics," and a handgun allowed in part. The Debtor's unitemized, categorical claims of exemption could not be traced to insurance proceeds from postpetition fire that resulted in loss of the Debtor's personal property. As a result, the Debtor's claims of exemption were limited to the scheduled amounts.

11 U.S.C. §541(a)(1), (6)

Michael Leroy Tarrant 03/23/2023

Case No. 15-71581

United States Trustee filed motion to reopen bankruptcy case to investigate whether cause of action stemming from post-petition cancer diagnosis is property of the estate. In granting the motion, the Court made clear that no action to administer the asset would be allowed absent proof that the cause of action is property of the estate.

11 U.S.C. §§350(b), 541(a)

Reinbold v. Schertz, Adv. No. 21-07017 11/17/2022

Case No. 21-70207

Trustee authorized to sell real estate co-owned by the bankruptcy estate and nonfiling spouse as tenants by the entirety for the benefit of the couple's joint creditors. The co-owners' interests in the property, which were contingent by virtue of a prepetition dissolution of marriage petition filed in Illinois state court, were determined and allocated among the co-owners in accordance with the Illinois Marriage and Dissolution of Marriage Act.

11 U.S.C. §363(h); 735 ILCS 5/12-112; 750 ILCS 5/503

Le La Nails, LLC and Autopro Transportation Inc. 09/08/2022

Case Nos. 22-70120 and 22-70305

The United States Trustee's motions to examine debtors' transactions with attorneys granted in two dismissed cases filed by the same law firm on behalf of non-existent entities. Because the filings yielded no benefit to the entities actually intended to be debtors and exposed the entities' individual representatives to legal jeopardy, and because the attorneys' handling of the cases fell well short of the minimum standards for competent representation, the attorneys were required to disgorge all fees and costs paid to them.

11 U.S.C. §§329(b), 707(b)(4); Fed. R. Bankr. P. 2017(a), 9011(b)

Le La Nails, LLC and Autopro Transportation Inc. 08/18/2022

Case Nos. 22-70120 and 22-70305

The United States Trustee's motions to dismiss granted in two cases filed by the same law firm on behalf of non-existent business entities. Because amending the petitions to correct the names (and in one case the Employer Identification Number) would not cure the problems of originally filing petitions for entities that do not exist and because entities that did not file the cases in the first place cannot rely on the rule allowing amendments to substitute themselves as the debtors, both cases were properly dismissed.

11 U.S.C. §§101(41), 109(a); Fed. R. Bankr. P. 1009(a) 

IDES v. Taylor, Adv. No. 21-07019 08/01/2022

Case No. 21-70349

Debt owed for overpayment of unemployment benefits excepted from discharge where Debtor misrepresented his status as unemployed in applying for and regularly certifying his eligibility for benefits despite being full-time employed at all times.

11 U.S.C. §523(a)(2)(A)

Travis L. Murphy 06/23/2022

Case No. 18-71012

Debtor's voluntary motion to dismiss Chapter 7 case for cause denied notwithstanding his promise to pay creditors outside bankruptcy. The Debtor was previously denied a discharge in the long-pending case, and his history of abuse of the bankruptcy process precluded a finding that the best interest of his creditors would be served by dismissal. The Debtor also failed to establish authority for his request that the bankruptcy filing be expunged or sealed.

11 U.S.C. §707(a)

Kimberly Jo Steinke 06/15/2022

Case No. 21-90618

Chapter 7 Trustee's objection to the Debtor's amended claim of exemption denied. The Debtor's interest in her ex-husband's retirement account awarded to her in dissolution of marriage was exempt under Illinois law on the petition date.

735 ILCS 5/12-1006(a)

Ryan Louis 06/07/2022

Case No. 20-71283

Fee applications of the Debtor's attorney and case trustee approved in Chapter 11 Subchapter V case in which consensual confirmation was achieved. The case, however, raised concerns about the developing standards for handling Subchapter V cases in the Central District of Illinois, warranting careful review and discussion of the work done and fees sought.

11 U.S.C. §§1181-1195

Stone v. CEFCU, Adv. No. 17-08049 03/30/2022

Case No. 15-81467

Prepetition transfers made to satisfy what were primarily debts of the debtor company's controlling shareholder when the company was insolvent and undercapitalized were avoided as constructively fraudulent transfers under the Illinois Uniform Fraudulent Transfer Act and the Bankruptcy Code.

11 U.S.C. §§544, 550

740 ILCS 160/5; 740 ILCS 160/6

William E. Baker, Jr. 03/07/2022

Case No. 18-71139

Debtor had standing to object to claims. Claims for debts of limited liability company of which individual debtor was member/manager were disallowed in debtor's individual bankruptcy case where claimants failed to meet their burden of proving that the debtor was personally liable to them for the debts.

§502(a); Fed. R. Bankr. P. 3001

805 ILCS 180/10-10

Lee v. Line, Adv. No. 21-09002 01/20/2022

Case No. 20-90855

Debt evidenced by final state court judgment excepted from the Debtor's discharge. Because the factual findings of the state court supported the factual elements necessary to establish a finding that the debt arose from the Debtor's defalcation as a fiduciary, the Debtor was collaterally estopped from relitigating those issues and the Plaintiffs were entitled to summary judgment in their favor.

11 U.S.C. §523(a)(4)

Tariea Tanya Kincaid 12/09/2021

Case No. 19-70433

United States Trustee's Motion for a Determination of Reasonable Value of Services of Debtor's Attorney and for Sanctions granted. Disgorgement of fees and reimbursement of costs required where Debtor's attorney's conduct fell below professional standards and violated the Bankruptcy Code and Rules in the handling of the Debtor's Chapter 7 case.

§§105, 329, 526; Fed. R. Bankr. P. 1009, 7054, 9011

Central Laborers' Pension Fund v. VanHuss, Adv. No. 21-07009 10/27/2021

Case No. 20-71820

Amended complaint and adversary proceeding dismissed with prejudice because the plaintiffs lacked standing and, in any event, failed to state a plausible claim upon which relief could be granted despite having previously been admonished of the defects in prior complaints and given leave to correct those defects.

§523(a)(6); Fed. R. Civ. P. 12(b)(6), Fed. R. Bankr. P. 7012

Boone v. Bentley, Adv. No. 20-09014 09/21/2021

Case No. 20-90547

DIscharge denied where Debtor made false oaths in his bankruptcy petition and schedules by exaggerating his role and interest in various business entities.

11 U.S.C. §727(a)(4)(A)

Robert W. Egizii 08/09/2021

Case No. 20-71187

Chapter 11 individual debtor could claim Florida condominium, owned with his wife as tenants by the entirety, as fully exempt under §522(b)(3)(B) and the laws of the State of Florida.

11 U.S.C. §522(b)(3)(B)

Robert W. Egizii 07/13/2021

Case No. 20-71187

Chapter 11 individual debtor could not claim Illinois tenancy by the entirety exemption in residential property that was not his homestead.

11 U.S.C. §522; 735 ILCS 5/12-1201; 735 ILCS 5/12-112; 765 ILCS 1005/1c

Richardson v. Cellco, Adv. No. 20-07045 04/06/2021

Case No. 20-70844

Venue is proper for preference action commenced by the Chapter 7 case trustee against defendant that conducted business across the country, including the State of Illinois, and transacted with the debtor in the Central District of Illinois.

28 U.S.C §§ 1391(c) and 1409(b)

Brett M. Koss 03/24/2021

Case No. 19-70782

Actual and punitive damages, as well as attorney fees, awarded to Debtor as sanction against creditor for willful violations of the automatic stay.

Section 362

Gargula v. Baker, Adv. No. 19-07004 12/29/2020

Case No. 18-71139

Discharge denied where Debtor transferred and concealed assets and made multiple false oaths on his schedules, statement of financial affairs, and at his creditors meeting.

Sections 727(a)(2)(A) and (4)(A)

Kevin R. Gaffney 09/29/2020

Case No. 19-71492

Motion to allow late-filed claim or to extend the time for filing denied where creditor had actual knowledge of Chapter 7 bankruptcy case despite not receiving proper, formal notice of the case.

Section 726(a)(2)(C); Federal Rule of Bankruptcy Procedure 3002(c)(6)(A)

UMB Bank, N.A. v. Murphy, Adv. No. 18-07050 09/03/2020

Case No. 18-71012

Discharge denied where Debtor transferred and concealed the transfer of creditor's collateral, falsified documents in relation to his dealings with the creditor, and made a false oath in scheduling an asset at a clearly inflated value.

Sections 727(a)(2)(A), (3), and (4)(A)

Marilyn Ann Finn and Gale Ray Custer and Joyce Annette Custer 08/28/2020

Case Nos. 19-71144 and 19-71778

United States Trustee's Motions for Determination of Reasonable Value of Services of Debtors' Attorney and for Sanctions granted, in part. Disgorgement of fees and costs required where Debtors' attorney's conduct fell below professional standards and violated the Bankruptcy Code and Rules in the preparing, filing, and handling of the Debtors' bankruptcy cases.

Sections 105, 329, 526, 707(b)(4); Fed. R. Bankr. P. 9011

TTC Illinois Incorporated, et al. 06/24/2020

Case No. 01-92550

Motion to Reopen Chapter 11 case denied where third party successor in interest to the residual assets of the Debtor failed to establish cause for reopening.

Section 350(b)

Pliura v. Brady, Adv. No. 19-07011 03/31/2020

Case No. 18-71832

Debt excepted from discharge where Debtor signed security agreement misrepresenting his interest in and the encumbered status of collateral pledged.

Section 523(a)(2)(A) and (B)

Ambassador Steel Fabrication, LLC v. Thornton, Adv. No. 19-07008 02/28/2020

Case No. 18-71744

No exception to discharge where plaintiff failed to establish that it was owed a debt by the individual debtor, as well as other key elements of its causes of action.

Section 523(a)(4), (6)

Keith L. Tatro 01/31/2020

Case No. 19-70537

United States Trustee's motion for disgorgement of fees granted. Fees and costs charged by Debtor's attorney to reopen case and file motion to avoid lien that should have been filed when the case was originally open but for the attorney's failure to perform reasonable investigation had to be disgorged.

Section 707(b)(4)(C), (D); Fed. R. Bankr. P. 9011

 

Hills v. First Financial Bank, N.A., Adv. No. 19-09002 12/19/2019

Case No. 18-91109

Movant's ten motions to disqualify filed in a closed adversary proceeding denied.

28 U.S.C. §455

Erin Marie Zgonina 11/20/2019

Case No. 19-90467

The Chapter 7 debtor's medical bills were consumer debts for purposes of determining whether "granting of relief would be an abuse of the provisions" of Chapter 7.

Sections 707(b)(1) and (b)(2)

Michael K. Lusher and Mary A. Lusher 09/19/2019

Case No. 18-71772

Chapter 7 Trustee's motion to reopen case to administer asset denied where the debtors had disclosed "possible inheritance" of an "unknown" value and the Trustee abandoned the asset by filing his Report of No Distribution and allowing the case to close without further investigation. 

Sections 350(a) and (b), 554(c); Fed. R. Bankr. P. 5009 and 5010

Meyer v. Grady, Adv. No. 17-07043 09/10/2019

Case No. 17-70853

Discharges of both Debtors denied where one Debtor made multiple false oaths at creditors meeting and subsequent 2004 examination and both Debtors willfully refused to comply with the Court's order requiring production of documents and participation in 2004 examinations.

Section 727(a)(4)(a) and (6)(A)

Charles W. Fuqua, II, and Ruth A. Fuqua 08/09/2019

Case No. 17-91140

Application for Administrative Expense for the attorney representing the Debtors in a Chapter 11 small business case that was subsequently converted to Chapter 7 allowed, in part, and denied, in part. The attorney's failure to conform to the basic organizational standards for fee applications and the overall caliber of legal work warranted denial of a significant portion of the total fees requested.

Section 330; Fed. R. Bankr. P. 2016

Terry L. Littig 07/19/2019

Case No. 19-70152

Judicial lien partially avoided to the extent that there was not enough equity in homestead to satisfy the lien after subtracting other liens and the Debtor's homestead exemption from the value of the property.

Section 522(f)(2)(A)

Premier Network Solutions, Inc., v. McCarty, Adv. No. 18-09003 06/21/2019

Case No. 17-91187

No exception to discharge where plaintiff failed to establish that it was owed a debt by former employee, as well as other key elements of its cause of action.

Section 523(a)(4), (6)

Prillaman v Monroe, Adv. No. 18-09025 05/08/2019

Case No. 17-90819

Lumping separate causes of action under the Illinois Uniform Fraudulent Transfer Act ("IUFTA") and the Federal Debt Collection Practices Act ("FDCPA") into a single count warranted dismissal with leave to file amended complaint.

Fed. R. Civ. P. 12(b)(6); Fed. R. Bankr. P. 7012

Earl Gaudio & Son, Inc. 03/29/2019

Case no. 13-90942

Final compensation for custodian and attorney of Chapter 11 corporate debtor allowed, in part, and denied, in part. Inadequate disclosures at the time of employment warranted denial of fees and costs in professionals' final applications for compensation.

Sections 327, 328, 330; Fed. R. Bankr. P. 2014, 2016

York v. Gillison, Adv. No. 17-09025 02/28/2019

Case No. 17-90985

Debt owed to Plaintiff by limited liability company for breach of contract excepted from discharge of individual Debtor with company ownership or membership interest where the Debtor's false representations caused and resulted in the breach of contract and damages sustained by Plaintiff.

Section 523(a)(2)(A)

Wilson v. Henrichs Insurance Services, Inc., Adv. No. 18-09012 12/17/2018

Case No. 17-90542

Amended complaint and adversary proceeding dismissed with prejudice when plaintiff failed to state a plausible claim upon which relief could be granted despite having previously been given leave to correct the defects in the original complaint. 

Sections 547, 550; Fed. R. Civ. P. 12(b)(6), Fed. R. Bankr. P. 7012

Chad M. Bland and Shawntee M. Bland 11/29/2018

Case No. 18-70442

Chapter 7 Trustee's objection to the Debtors' claim of exemptions denied. Despite statutory presumption, the Trustee failed to meet his burden of proof in the face of the Debtors' credible and uncontradicted testimony to the contrary.

735 ILCS 5/12-1001

John C. Benanti and Debra M. Benanti 11/06/2018

Case No. 15-71018

Motion to reconsider order on allowance of claim or for a new trial based on "newly discovered evidence" denied where moving party failed to establish that it exercised diligence in obtaining the evidence prior to judgment being entered.

Section 502(j); Federal Rules of Civil Procedure 59 and 60; Federal Rules of Bankruptcy Procedure 9023 and 9024

Gargula v. Cooper, Adv. No. 18-09004 08/22/2018

Case No. 16-91187

Debtors' discharges revoked where they were informed that tax refund was estate property in which the case trustee had an interest and ordered to turn over the refund but did not do so until after the action to revoke their discharges was commenced.

Section 727(d)(2).

Vincent J. Walch and Alexis L. Walch 08/13/2018

Case No. 17-70467

Postpetition unsecured debt not incurred in the ordinary course of business was not entitled to administrative expense treatment when prior court approval was not sought.

Section 364(a)-(c)

Earl Gaudio & Son, Inc. 07/16/2018

Case no. 13-90942
Interim compensation for custodian and attorney of Chapter 11 corporate debtor allowed, in part, and denied, in part.
Section 330, Fed. R. Bankr. P. 2016.

Bandy v. DeLay, et al., Adv. No. 16-07040 06/13/2018

Case No. 14-71512
Stay pending appeal of judgment granted where prevailing party filed a cross-appeal regarding parts of the judgment not severable from the rest.
Fed. R. Bankr. P. 7062(d), 8007

John C. Benanti and Debra M. Benanti 04/13/2018

Case No. 15-71018
Creditor's contingent claim against Debtors as gaurantors allowed in the amount of zero because claim was likely to remain contingent.
Section 502(b), (c) 

Bandy v. DeLay, et al., Adv. No. 16-07040 03/29/2018

Case No. 14-71512
Creditor in a voluntary Chapter 7 case entitled to compensatory and punitive damages for the Debtor's willful stay violation, as well as declaratory relief voiding the state court judgment obtained by the Debtor without first seeking stay relief.
Section 362(k)

Jennifer R. Housley 02/21/2018

Case No. 17-71908
Chapter 13 trustee justified in not paying pre-confirmation adequate protection payments without the filing of a motion and the entry of an order specifically authorizing the payments to be made to a creditor.
Section 1326(a)(1)(C)

Michael Terry Smith and Patricia Lynn Smith 01/19/2018

Case No. 17-71371
Trustee's objection to Debtors' claim of exemption in inherited IRA sustained. Exemption for "retirement plans" does not apply to inherited IRAs under Illinois law.
735 ILCS 5/12-1006

THR & Associates, Inc., and Aldo and Julie Ruffolo 01/04/2018

Case No. 12-72022 and 15-90801
Failure to fully disclose all compensation paid or promised to auctioneer warranted denial of applications for compensation of auctioneer.
Sections 327 and 330; Fed. R. Bankr. P. 2014, 2016, 6005

Richardson v. Swisher, Adv. No. 17-07012 11/22/2017

Case No. 17-70310
Discharge denied where Debtor failed to disclose cash on hand in order to hinder, delay, or defraud the Trustee and her creditors.
Section 727(a)(2)(B) and (4)(A)

Schentel Maiers 10/31/2017

Case No. 17-70869
Joint stipulation regarding apparent agreement between Chapter 7 Debtor and her creditor to except a debt from discharge not approved where there was no pending adversary proceeding to properly bring the matter before the Court.
Sections 523(c) and 524; Rules 4007(c), 7001(6), and 7003

Paul W. Davis and Rebecca L. Davis 10/30/2017

Case No. 17-70784
Chapter 13 Trustee's objection to plan confirmation based on the Debtors' deduction of postpetition 401(k) contributions in calculating disposable income was overruled.
Sections 541(b)(7) and 1306(a)(1)

Patricia Ann Awayda 10/18/2017

Case No. 17-90458
Trustee's objection to Debtor's claim of exemptions overruled and her motion for turnover order denied where proceeds from the sale of the Debtor's homestead were exempt under Illinois law on the petition date.
Section 522(b); 735 ILCS 5/12-906

Hassan N. Awan 09/21/2017

Case No. 13-71508
Trustee's objection to Debtor's claim of exemptions sustained in reopened case where Debtor failed to show excusable neglect for not amending schedules before case originally closed.
Fed. R. Bankr. P. 1009(a), 9006(b)(1)

Trevor Ryan Planck 08/03/2017

Case No. 17-70023
Dismissal of Chapter 7 case warranted because the debtor did not rebut the presumption of abuse that arose from failing the means test.
Section 707(b)(1)-(2).

Nancy J. Gargula v. Daniel C. Miner, Jr., Adv. No. 16-07038 07/07/2017

Case No. 15-71919
Discharge denied where Debtor concealed and then misrepresented the timing and nature of the transfer of his only substantial, unencumbered, non-exempt asset to a family-owned company of which he has a part in order to hinder, delay, or defraud his creditors.
Sections 727(a)(2)(A) and (4)(A)
 

Erik S. Lucas 06/16/2017

Case No. 16-71878
Debtor's motion to convert his Chapter 7 case to Chapter 13 denied where his conduct in filing his Chapter 7 case was not in good faith.
Sections 706(a) and (d), 1307(c).

Venita R. Tanner 06/16/2017

Case No. 17-70325
No authority to grant the Chapter 7 Trustee's motion requesting that the Debtor's power of attorney be allowed to borrow and turnover the cash value of life insurance policies. Section 704(a)(1).

Tristan A. Durov 03/10/2017

Case No. 16-71699
Individual did not have sufficiently stable and regular income to enable him to make payments under any plan and therefore was not eligible to be a debtor under Chapter 13.
Sections 101(30), 109(e), 1307(c), 1325(a)(7)

Ford Motor Credit Company, LLC v. Fleckenstein, et al. 03/03/2017

Adversary No. 16-09002
Ross J. Fleckenstein and Kimberly A. Fleckenstein, Case No. 15-90922
Debt not excepted from discharge where creditor failed to meet burden of proof.
Section 523(a)(2)(B)

Paul B. Heft 02/16/2017

Case No. 16-70536
Secured creditor could not be paid by the trustee through Chapter 12 plan without having a claim on file.
Fed. R. Bankr. P. 3002(c)

Earl Gaudio & Son, Inc. 01/25/2017

Case No. 13-90942
Chapter 11 corporate debtor's income tax debt for tax year ending post-petition is entitled to administrative expense claim treatment.
11 U.S.C. 503, 507

BMA Ventures, LLC v. Prillaman 01/24/2017

Adversary No. 15-09033
Blair M. Minton, Case No. 14-91293
Illinois LLC's operating agreement did not contain the types of material obligations that would make it an executory contract. The Court did not have subject matter jurisdiction over request for declaratory relief based on hypothetical facts.
11 U.S.C. 365; 28 U.S.C. 2201(a); 805 ILCS 180/1-1 to 60-1
 

AmeriCash Loans LLC v. Marquardt and AmeriCash Loans LLC v. Jones 12/29/2016

Adversary No. 16-07008 and 16-07012
Case No. 15-71944 and 16-70161
Payday lender not entitled to presumption of nondischargeability. Loans not excepted from Debtors' discharges.
Section 523(a)(2)(A), (C); Fed. R. Bankr. P. 7055

Nancy J. Gargula v. Arianna Brown, Adv. No. 16-7036 12/29/2016

Case No. 16-70699
Objection to discharge denied where omission of asset from schedules was inadvertent.
Section 727(a)(4)(A)

VanDettum v. Wease, et al. 11/28/2016

Adversary No. 15-07051
John Adrian Wease and Kimberly Ann Wease, Case No. 15-71431
Debt not excepted from discharge where creditor failed to meet burden of proof.
Section 523(a)(2), (4), and (6)

Aaron E. Ruebling and Linda Ruebling 11/21/2016

Case No. 15-71627
Application for compensation denied and attorney sanctioned for filing petition with debtors' electronic signatures affixed without first obtaining original "wet signatures."
Sections 105(a), 330(a)(3); Fed. R. Bankr. P. 1008, 9011.

Richard M. Sabbun 08/22/2016

Case No. 14-72106
Confirmation of Chapter 11 plan denied where no affirmative ballots were cast.
11 U.S.C. §1129(a)(10)

Kevin G. Noggle and Michelle L. Noggle 07/20/2016

Case No. 15-90708
Motion for leave to file late proof of claim denied.
Fed. R. Bankr. P. 3002(a), (c)

Henry v. U.S. Department of Education 07/05/2016

Adversary No. 14-7021
In re Sheryle Henry, Case No. 14-70113
Student loan debt not discharged where Debtor failed to prove elements of Brunner test.
Section 523(a)(8)

Richardson v. Green et al. 05/26/2016

Adversary No. 14-7008
THR & Associates, Inc., Case No. 12-72022
Motions to dismiss adversary complaint denied - causes of action adequately stated and not time-barred.
Fed. R. Civ. P. 12(b)(6); Fed. R. Bankr. P. 7012

Pearson Brothers Construction, Inc. 05/17/2016

Case No. 15-90458
Sections 330(a), 326(a)
Chapter 7 trustee compensation is commission-based.

Prillaman v. First Community Bank of Galena 04/14/2016

Adv. 15-9009
In re Blair M. Minton, Case No. 14-91293
Contractual provision which conditions repayment of loan upon default on other loans is not an unenforceable penalty.
Fed. R. Bankr. P. 7056

Wesley P. Hardin v. Benita K. Alewelt 03/31/2016

Adv. No. 14-7065
Case No. 14-70578
Debt owed to former spouse for maintenance reimbursement to which Debtor was not entitled and obtained through actual fraud is nondischargeable.
Section 523(a)(2)(A)
 

Kyle A. Nave and Amanda M. Nave 03/30/2016

Case No. 13-72140
Chapter 7 Trustee's Final Report, which disclosed sale of asset at a loss and disclosed payment of estimated rather than actual expenses, reluctantly approved with adjustment to expenses and admonitions about future practices.
Sections 704(a), 330(a)(1)(B)

Amanda K. Coyle 03/02/2016

Case No. 14-90026
Objection to exemptions based on fraud and bad faith denied.
735 ILCS 5/12-1006

Butler v. Educational Credit Management Corporation 01/27/2016

Adv. No. 14-07069
In re Butler, 14-71585
Section 523(a)(8)
Student debt not discharged where debtor failed to demonstrate "certainty of hopelessness."

Richardson v. JPMorgan Chase Bank, N.A. 01/07/2016

Adv. No. 15-7033
(In re Robert J. Jordan, Case No. 15-70132)
Mortgages obtained by unlicensed lenders are not invalid under Illinois law solely because of the licensing violation.
205 ILCS 635/1-3(e).
 

James R. Inghram, Trustee v. Sheryle Henry 11/30/2015

Adv. No. 15-7023
Revocation of discharge denied where elements of proof - "knowing and fraudulent conduct" and "refusing" to comply - were unestablished.
Section 727(d)(1)-(3)
 

Kenneth Gene Hart and Shelly Jean Harrison-Hart 10/30/2015

Case No. 14-72070
Minimal attorney fee awarded in Chapter 13 case where quality of work was poor and contemporaneous time records were not kept.
Section 330

John C. Benanti and Debra M. Benanti 10/26/2015

Case No. 15-71018
Mortgagee with valid, perfected security interest in post-petition rents entitled to stay relief and abandonment.
Sections 362(d)(1), 363(c)(2), 552(b)(2), 554(b)
 

Coyle et al. v Coyle 09/25/2015

Adv. No. 14-9013
Section 727(a)(2)(A)
Debtor's discharge denied for making transfers to hinder and delay collection efforts of judgment creditors.

Patricia A. Currie 09/17/2015

Case No. 14-71331
Local Standards: Housing and Utilities allowance is available to anyone who has housing expenses.
11 U.S.C. 707(b)(2)(A); 11 U.S.C. 1325(b)

Pekin Ins. Co. v. Harlin W. Wallace et al. 07/23/2015

Adv. No. 14-7063
Adversary complaint dismissed for lack of subject matter jurisdiction.
28 U.S.C. 1334; 28 U.S.C. 157

Gargula v. Kyle A. Nave 06/29/2015

Adv. No. 14-07012
Objection to discharge sustained where debtor failed to disclose estate property and failed to comply with court order
Sections 727(a)(4)(A), (a)(6)(A)
 

James C. Flaugher 05/22/2015

Case No. 12-70904
Trustee's application for fees relating to hypothetical distribution of converted estate funds denied.
Section 330(a), 326(a)

Steven J. Barfield 04/17/2015

Case No. 11-72074
Motion to Amend or Alter Judgment denied.
Section 102(1)

Preferred Property Group, LLC 03/31/2015

Case No. 11-91764
Application for attorney fees allowed in part; request for disgorgement denied.
Section 329(b)
 

Rickey L. Evans 03/17/2015

Case No. 14-70700
Section 1307(c)
Lack of good faith and unreasonable delay warranted case dismissal with one-year bar to refiling.

Eric Todd Curry and Tammy Renee Curry 03/05/2015

Case No. 14-70979
Income-based repayment terms do not make a student loan an executory contract which can be assumed or rejected in a Ch. 13 plan.
Sections 365, 1322(b)(7)
 
 

Holly C. Hughes 02/19/2015

Case No. 14-71879
Section 541
Child support in hand generally belongs to parent, not child, and is property of Ch. 7 estate.

Jeffrey D. Richardson v. James C. Flaugher 02/02/2015

Adv. 14-7006
Discharge revoked for failure to report and turn over EEOC award proceeds.
Section 727(d)(2)

Caleb Edward Henderson and Ashley Marie Kesteloot 01/30/2015

Bodily injury exemption may not be claimed by uninjured co-debtor spouse.
735 ILCS 5/12-1001(h)(4)

Steven J. Barfield 01/29/2015

Ch. 7 trustee not entitled to "confirmation" of unauthorized sale.
Section 363(b); Fed. R. Bankr. P. 6004

Ronald W. Nothdurft & Nancy A. Natterman-Nothdurft 11/13/2014

Case No. 14-71307
735 ILCS 5/12-1001(g); 735 ILCS 5/12-1006(a).
Trustee's objection to claims of exemption allowed in part; denied in part.

Benita K. Alewelt 10/30/2014

Case No. 14-70578
Sections 502, 507(a)(1)(A), 101(14A)
Claim for child support arrearage entitled to priority treatment; claim for reimbursement for maintenance overpayments is a general unsecured claim.

Tony Lee Carter and Brandi Michelle Carter 09/26/2014

Case No. 13-70172
Section 330(a)(3)
Chapter 13 no-look fee denied. Fees reduced due to poor quality of work and failure to properly keep time.

Patrick Londrigan 09/03/2014

Case No. 14-70025
Sections 362(a)(1),(2) and 524(a)(1),(2)
No cause shown to lift stay or modify discharge injunction.

Ashley L. Austin 07/24/2014

Exemption for public assistance benefits does not extend to benefits received pre-petition.
735 ILCS 5/12-1001(g)

John Bone and Amber Bone 07/14/2014

Case No. 12-71112
Plan modification is distinct from claim allowance process.
Section 1329

Seth A. Wills and Melanie X. Wills 05/30/2014

Case No. 10-72120
Motion to Modify Chapter 13 Plan granted in part.
Sections 1329, 1325(a)(6)
 

Virgil and Jamie Beckum 05/08/2014

Case No. 14-70013
Replacement value is the post-BAPCPA standard for redemption
Sections 722, 506(a)

Kelley Michelle Bergae 04/11/2014

Case No. 13-71645
Section 330
Application for Attorney's Fees allowed in part; denied in part.

Myrick & Elvie Powers and David W. Powell 03/28/2014

Cases No. 10-71700 and 11-72448
Chapter 13 Trustee's motions to modify confirmed plans denied
Section 1329
 
 

In re Copenhaver, Inc. 03/11/2014

Sections 363(b), 503; Rule 2016
Fee application required regardless of basis for employment.

City of Roodhouse v. Stice 02/28/2014

Sections 727(a)(2)(A), 727(a)(4)(A)
Discharge denied for failure to disclose remainder interest

Cox v. Health Alliance, Adv. 13-7019 (EIY Co., Inc., 12-72028) 02/26/2014

Section 547(b),(c); Fed.R.Bankr.P. 7056
Defense of ordinary course of business sustained to defeat preference action in part.

Norman E. Cowger and Jennifer R. Cowger 01/29/2014

Case No. 13-71433
 
Section 1325(a)(4)
 
Cost/benefit analysis required to value avoidable preference.
 
 

James Blasko 11/18/2013

13-71005
 
Obligation to pay marital debt determined to be domestic support obligation and, therefore, stay relief granted.
 
Section 523(a)(5)

Kira I. M. Youngblood 10/10/2013

Sections 1307(b), (c)
 
Chapter 13 case dismissed with bar to refiling as sanction

Jeffrey A. Parsons 09/06/2013

Stay relief, abandonment denied to contract for deed seller
Sections 362, 541, 554

Terrance M. Brennan 08/08/2013

Sections 329, 330; Rule 2016
"No look" fee denied due to poor quality of legal services.

09-71353 Anthony James Grason 07/18/2013

Sec. 362
Annulment of stay denied.

First State Bank of Bloomington v. Cannell, Adv. 12-7051 06/07/2013

Discharge denied under Section 727(a)(2)(A) where Debtor, while subject to a citation to discover assets, hindered and delayed collection by creditor.

09-71845 Bradd Randall Stewart and Heather Ann Stewart 05/15/2013

§524(a)(2): City enjoined from collecting pre-petition claim for demolition expenses.