For Creditors|Illinois Bankruptcy Blog Category – Law Office of William J. Factor, Ltd.

SBRA's Debt Ceiling Increased to $7.5 million - More Businesses and Individuals will Qualify

March 26th, 2020

The massive economic stimulus plan circulating in Congress right now will permit more businesses or individuals to take advantage of Subchapter 5 of the Bankruptcy Code (which FactorLaw has analyzed in prior posts) by increasing the debt cap from $2,… Read More

Covid-19 Federal Disaster Loans for Small Businesses and Nonprofits.

March 22nd, 2020

We have been alerted by an email from the Kreshmore Group, an advisory firm in Illinois, about a new programs called the “COVID-19 Federal Disaster Loans for Small Businesses and Nonprofits According to the email from Kreshmore: On 3/19/2020, t… Read More

Noting split of authority, 6th Circuit BAP holds debtor's discharge precluded creditor from recovering under prepetition guaranty.

March 8th, 2020

In In re Orlandi, 19-8001 (6th Cir. BAP Feb. 28, 2020), the Sixth Circuit BAP held that a chapter 7 debtor’s liability on a lease guaranty had been discharged when the guarantor/debtor filed for bankruptcy relief years earlier. Thus, the landlo… Read More

FactorLaw's Summary and Analysis of the Small Business Reorganization Act

February 19th, 2020

1. THE SUBCHAPTER 5 ELECTION. Chapter 11 now contains a “Subchapter 5” which applies only to “small business debtors” that make a so-called “Subchapter 5” election. See 11 U.S.C. §§ 1181-1195. Absent such an election, the small business… Read More

Tags: chapter 11, SBRA, small business, Small Business Reorganization Act

Governor of New York Limits Power of Merchant Cash Advance Lenders to Use Confessions of Judgment

September 3rd, 2019

As a follow-up to our series of articles on the use of Merchant Cash Advances (see here, here, and here), we learned today that New York Governor Andrew Cuomo signed a bill last week aimed at preventing predatory lenders from using the state’s… Read More

Tags: Cuomo, Merchant Cash Advances

Small Business Reorganization Act Enacted

August 26th, 2019

As discussed in a previous post, on Friday, the Small Business Reorganization Act was signed into law and will take effect in 180 days. The new law, which FactorLaw will further summarize in future blog posts, adds a new subchapter to the Bankruptcy… Read More

Tags: bankruptcy code, Small Business Reorganization Act

Seventh Circuit holds that a debtor's "contingent future interest" in tenancy by entireties property is not exempt.

August 6th, 2019

In re Jaffe, 18-2726 (7th Cir. August 5, 2019), the Seventh Circuit held that a homeowner’s “contingent future interest” in an otherwise exempt form of home ownership – tenancy by the entireties – was not exempt and was instead prop… Read More

Tags: contingent future interest in tenancy by entirety property is not exempt under Illinois law, real estate

Chicago Appellate Court directs City of Chicago to release impounded vehicles when owner files Chapter 13 petition.

July 2nd, 2019

Seventh Circuit directs City of Chicago to release impounded vehicles and affirms holding in Thompson. Read More

Tags: car boot, chapter 13, impounding

Notable parallels between the 2008-2009 financial crisis and today's high-risk alternative lending sector

June 15th, 2019

This week, the American Bankruptcy Institute posted an article (which is reprinted below) identifying a growing trend that may impact a large sector of the economy: alternative lenders making risky loans. As many know, the 2008-2009 meltdown ensnared… Read More

Tags: bankruptcy, financial crisis, loans

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Court rejects "sufficiently rooted" test and holds bankruptcy estate does not include portion of bonus earned from prepetition employment

May 11th, 2019

In In re Brown, Case No. 18-81242 (Bankr. C.D. Ill. May 9, 2019), Judge Perkins of the Central District of Illinois, concluded that property of the estate did not include that portion of a debtor’s annual bonus payable after the petition date t… Read More

Tags: Chapter 7 Bankruptcy

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