OPINION Mary P. Gorman , United States Bankruptcy Judge . Before the Court, after trial, is a complaint to determine the dischargeability of a debt allegedly owed by the Debtor to Ambassador Steel Fabrication, LLC ("Ambassador"). For the reasons set forth herein, judgment will be entered in favor of the Debtor and against Ambassador. No debt to Ambassador will be excepted from the Debtor's discharge. I. Factual and Procedural Background Joseph T. Thornton, Jr. ("Debtor") and his spouse,...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court is the United States Trustee's Motion for Disgorgement of Fees seeking a review of the fees and costs charged by Attorney Michael Meyers and Ostling & Associates, LTD, for the reopening of this case and for filing a motion to avoid a lien with respect to the Debtor's personal property. For the reasons set for herein, the Motion for Disgorgement of Fees will be granted. I. Factual and Procedural Background Keith L. Tatro ("...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court are ten motions to disqualify judge—a Motion for Disqualification Such that Further Proceedings are Treated Impartially by Successor Judge, Motion to Reopen for Relief from Erroneous Orders Entered, in Part, From Reckless Assumptions, and From Judge's Reliance on False Statements Intentionally Made by the Court's Own Officers, and Motion for Leave to File the Attached Notice of Appeal Under Extended Time, filed August 16, 2019; a...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court is a Motion to Dismiss Case for Abuse Pursuant to 11 U.S.C. 707(b)(1) and (b)(2), or in the Alternative, 707(b)(3), brought by the United States Trustee. For the reasons set forth herein, the Court finds that the Debtor's medical bills are consumer debts and that the Debtor's debts are therefore primarily consumer debts. The Debtor must therefore complete the "means test" on Official Forms 122A-1 and 122A-2. The Court also...
OPINION Thomas L. Perkins , United States Chief Bankruptcy Judge . This Chapter 7 case is before the Court for determination of whether the Debtor, Earl J. Swanson, Jr., may claim an exemption in a motor vehicle as property traceable to exempt proceeds of a personal injury settlement used to pay off a lien on the vehicle. As the applicable Illinois exemption statute for personal injury payments expressly extends the exemption to traceable property, without a condition that the exempt...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court is a motion to reopen the Debtors' closed Chapter 7 case filed by the Chapter 7 Trustee. For the reasons set forth herein, the motion will be denied. I. Factual and Procedural Background Michael K. Lusher and Mary A. Lusher ("Debtors") filed their voluntary Chapter 7 petition on December 6, 2018. On their Schedule A/B: Property, the Debtors disclosed a "[p]ossible inheritance from Debtor's brother passing" that they described...
OPINION Mary P. Gorman , United States Bankruptcy Judge Before the Court after trial is a complaint objecting to the Debtors' discharges. For the reasons set forth herein, judgment will be entered against the Debtors and their discharges will be denied. I. Factual and Procedural Background Everett E. Grady and Kathryn E. Grady ("Debtors") filed their voluntary petition under Chapter 7 on May 24, 2017. On their schedules, they listed ownership of an 88% interest in Kaegem Corporation ("...
OPINION MARY P. GORMAN , Chief Bankruptcy Judge . Before the Court is the Amended Application for Administrative Expense (#522) filed by Attorney Roy Jackson Dent, III, seeking an award of fees and costs for his representation of the Debtors in this case that was commenced as a Chapter 11 but was converted, over the objection of the Debtors, to Chapter 7. For the reasons set forth herein, the application will be allowed, in part, and denied, in part. I. Factual and Procedural Background...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court is a Third Amended Motion to Avoid Judicial Lien on Real Estate filed by the Debtor. For the reasons set forth herein, the motion will be granted, in part, and denied, in part. The judicial lien will be partially avoided to the extent that it impairs the Debtor's exemption in his homestead. I. Factual and Procedural Background Terry L. Littig ("Debtor") filed his voluntary petition under Chapter 7 of the Bankruptcy Code on...
OPINION MARY P. GORMAN , Chief Bankruptcy Judge . Before the Court for decision after trial is a complaint to determine the dischargeability of a debt allegedly owed by Bernard McCarty ("Debtor") to Premier Network Solutions, Inc. ("Premier Network"). Although the complaint is based on alternative legal theories, Premier Network did not meet its burden of proof on either theory. Accordingly, judgment will be entered in favor of the Debtor and against Premier Network. Any debt owed by the...
OPINION THOMAS L. PERKINS , Bankruptcy Judge . This matter is before the Court following a trial on the amended complaint filed by Fred and Donna Clark, Plaintiffs, against Dylan McCurdy, the Debtor, seeking to establish a debt under the Illinois Home Repair and Remodeling Act and a determination that such debt is nondischargeable pursuant to section 523(a)(2)(A) under the Bankruptcy Code. Factual Background In 2014, when the Plaintiffs were living in Hersman Illinois, they met the...
MEMORANDUM OF DECISION Thomas L. Perkins , United States Bankruptcy Judge . This matter is before the Court for decision on the issue of whether all or any part of an annual bonus expected to be received by the Debtor, Jennifer Brown, in the year following that in which she filed her bankruptcy case is property of the estate. The issue is raised by the Trustee's motion for turnover of a pro rata portion of the bonus, based on the pro rata by days method, and is submitted to the...
OPINION MARY P. GORMAN , Chief Bankruptcy Judge . Before the Court is a Motion to Dismiss filed by the Defendant, asserting that the complaint fails to state a claim upon which relief may be granted. For the reasons set forth herein and not for the reasons set forth in the Defendant's motion, the complaint will be dismissed and the Plaintiff will be given leave to file an amended complaint. I. Factual and Procedural Background Donald R. Grobner and Sharon R. Grobner ("Debtors") filed...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court for decision after trial is a complaint to determine the dischargeability of a debt allegedly owed by Aaron Gillison to Beth York. Because Beth York established by a preponderance of the evidence that Aaron Gillison is indebted to her and that the debt was incurred through false representations, the debt will be excepted from Aaron Gillison's discharge. I. Factual and Procedural Background Aaron Gillison ("Debtor") filed his...
MEMORANDUM OF DECISION THOMAS L. PERKINS , Bankruptcy Judge . This matter is before the Court for decision, after trial, on the six-count Complaint filed by CHAT Ltd., objecting both to the dischargeability of the debt owed by Bradley Stevens, the Debtor, and to the Debtor's right to receive a discharge. CHAT seeks a determination that the Debtor's discharge be denied pursuant to sections 727(a)(2), (a)(3) and (a)(4), or in the alternative, that its debt be determined nondischargeable...
OPINION Thomas L. Perkins , United States Bankruptcy Judge . This matter is before the Court on the objection filed by the chapter 13 debtor, Shelley Hawk (Debtor), to Claim 4-1 filed by the Illinois Department of Human Services (IDHS). The IDHS filed its claim in the amount of $16,784.76, asserting priority status as a Domestic Support Obligation (DSO), for reimbursement of an overpayment of child care assistance benefits. The Debtor denies the debt is a DSO entitled to priority. The...
OPINION MARY P. GORMAN , Chief Bankruptcy Judge . Before the Court is the motion of Henrichs Insurance Services, Inc., to dismiss the First Amended Adversary Complaint filed herein against it for failure to state a claim upon which relief can be granted. Because the First Amended Adversary Complaint fails to state a plausible claim upon which relief can be granted and because the Plaintiff Trustee was previously given leave to correct the defects in her pleading but failed to do so, the...
OPINION WILLIAM V. ALTENBERGER , Bankruptcy Judge . Before the Court is the Motion to Reopen Case filed by the Debtors, Thomas B. Williams and Karin M. Williams (jointly referred to as Debtors and individually as Thomas or Karin). The ultimate issue before the Court is whether the Court should reopen this chapter 13 case to allow the Debtors to amend their bankruptcy schedules to disclose Karin's lawsuit filed in District Court against Karin's former employer, Keystone Peer Review...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court is an objection to the Debtors' claim of exemptions filed by the Chapter 7 Trustee. After considering the testimony and exhibits presented at an evidentiary hearing, the objection will be denied because the Trustee did not meet his burden to prove that the Debtors are not entitled to their claimed exemptions. I. Factual and Procedural Background Chad M. Bland and Shawntee M. Bland ("Debtors") filed their voluntary petition...
OPINION Thomas L. Perkins , United States Bankruptcy Judge . This matter is before the Court on the objection filed by the Chapter 7 Trustee, Nina Gougis, to the homestead exemption claimed by the Debtor, Heidi Colton, in residential real estate located in Washington Illinois that she owns jointly with her husband, Jeff. The basis for the objection is that the Debtor did not occupy the property on the petition date as she and Jeff separated prior thereto, having agreed that the Debtor...
