Commercial Banking, Collections, and Bankruptcy

The newsletter of the ISBA’s Commercial Banking, Collections, and Bankruptcy Section

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2012 Articles

7th Circuit successor liability law as extended by Ordonez v. Akorat By Brian P. Welch & Barry A. Chatz February 2012 In Ordonez, et al v. Akorat Metal Fabricators, Inc., et al, the Northern District provided a roadmap of the federal doctrine of successor liability and gives asset-purchasers guidance on how not to plead a Motion for Summary Judgment asserting that successor liability is inapplicable as a matter of law.
Bankruptcy issues relating to personal injury cases By Brett J. Swanson August 2012 In the recent case of Berge v. Kuno Mader and DMG America, Inc., the First District found that the doctrine of judicial estoppel bars a plaintiff from proceeding with a cause of action in state court where the plaintiff fails to disclose the action as an asset in a bankruptcy petition.
Banks are still making loans By Lewis F. Matuszewich February 2012 Utilizing the United States Small Business Administration loan programs, in the fiscal year running from October 1, 2010 through September 30, 2011, 222 different lenders had SBA loans approved for business within Illinois.
Creditors’ rights against a member’s interest in an LLC By Charles W. Murdock August 2012 Effective January 1, 2012, the Code of Civil Procedure was amended to add a new provision by which the remedy of a charging order could be obtained, inter alia, by serving a citation to discover assets, either on the judgment debtor or against any third party who possesses property belonging to the judgment debtor.
Guarantor beware By Jerry D. Cavanaugh September 2012 A summary of the recent case of TH Davidson and Company vs. EIDOLA Concrete and Thomas Kilbride.
Illinois debtor prisons By Bob Markoff February 2012 The author has been a collection attorney in Illinois for 35 years specializing in enforcing judgments, and has never heard of any consumer sentenced to jail for not paying a bill. There are likely no consumers in an Illinois jail on such a charge. Then why all the media noise about debtor prisons?  
Lender liability is alive and well: Bank assessed compensatory and punitive damages for mishandling a Construction Loan By Michael L. Weissman September 2012 The case of Bank of America, N.A. v. Sanjiv Narula, et al. points out the need for lenders to deal fairly with borrowers, especially when a fiduciary relationship has been established.
The nightmare scenario By Michael G. Cortina August 2012 Rather than trying to “get one by” the judge and hope that s/he does not notice that we forgot something, we should strive to prove that we have done all that could possibly be required of us and that when we ask for relief from the court the judge will know that we are entitled to such relief.
Options for the client in trouble with real estate: Forbearance to bankruptcy and everything in between By Erica Crohn Minchella July 2012 A competent real estate attorney evaluates each client’s circumstances in light of various interests and perspectives and offers sound advice. But with so many factors and circumstances, how do we ensure we firmly grasp the specific needs of each client?
Piercing the corporate veil in Illinois: A tool for lenders By Michael L. Weissman September 2012 In Wachovia Securities, LLC v. Banco Panamericano, the Seventh Circuit Court of Appeals considered what must be established under Illinois law to impose liability on corporate insiders for indebtedness incurred by the corporation.
Piercing the corporate veil; When? By Rich Larson July 2012 It seems clear, under Illinois law, that corporate veil piercing is not permitted in supplementary proceedings, and if the federal courts are to follow the rule, there should be no veil piercing in federal supplementary proceedings based upon Illinois law either.
Tax issues facing the individual Chapter 11 debtor By Nancy Franks-Straus July 2012 A look at the income tax issues facing an individual filing Chapter 11.  
Up Cypress Creek: Mechanics liens get an inferiority complex By Eric Singer February 2012 In a troubled economy, falling property values, undersecured construction lending and bad decisions by others can render mechanics liens losing propositions before the contractor even sets foot on the site.