The term “defalcation” in § 523(a)(4) of the Bankruptcy Code includes a culpable state of mindrequirement involving knowledge of, or gross recklessness in respect to, the improper nature of the
fiduciary behavior, the U.S. Supreme Court held recently.
A business owner does not have a duty to make voluntary capital contributions to his financially-troubled business in order to avoid personal liability for its wage payment obligations, a bankruptcy judge in Northern Illinois has held.Read More
Illinois residential real estate that has been abandoned now is subject to “fast track” judicial foreclosure procedures aimed at minimizing the blight effects which abandoned houses have been having during the usual foreclosure process.Read More
Those cross-collateralization clauses common in commercial mortgages are enforceable and put subsequent lenders on inquiry notice of other debts brought within the scope of the mortgage by such clauses, the Seventh Circuit U.S. Court of Appeals ruled last week.Read More
Insufficient efforts to locate and serve the defendant before seeking and effecting publication service may be attacked by that defendant even after judgment by default has been entered, a panel in the Appellate Court’s Third District has ruled.Read More
A buyer of property by quitclaim deed generally may not claim breach of contract when it learns that the seller did not have fee simple title, a panel in the Appellate Court’s Third District has held.Read More
There are no circumstances that would ever justify an attorney filing a bankruptcy petition, the
supporting schedules, or the debtor’s Statement of Financial Affairs (“SOFA”) without first obtaining
the debtor’s actual signature thereto, the chief judge of a Texas bankruptcy court has held.