Commercial Banking, Collections, and Bankruptcy

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

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2025 Articles

As We Close the Year By Judge Michael J. Chmiel May 2025 An introduction to the issue from the editor.
Back To Work at Summer’s End By Judge Michael J. Chmiel September 2025 A note from the Editor of the Commercial Banking, Collections, and Bankruptscy Newletter regarding the closing of summer, the beginning of fall, and the current issue. 
Bankruptcy Court Upholds CNB Bank’s Secured Creditor Status Despite Entity Name Discrepancies: Southern District of Illinois Finds Name Misnomer Does Not Defeat UCC Attachment or Perfection By Deanna L. Litzenburg May 2025 A bankruptcy court in Illinois upheld CNB Bank’s status as a secured creditor, despite inconsistencies in the debtor’s name across loan documents. The court ruled that the name discrepancy was a minor error and did not invalidate the bank’s security interest under the UCC, as the debtor’s identity was clear and consistent with the business’s operations.
A Cautionary Tale in the Use of AI in Pleadings By John Holevas July 2025 At the 2025 Allerton Conference focusing on the impact of generative AI in legal practice, Judge Jeffrey A. Goffinet recounted a case where he sanctioned an attorney for citing a fictitious, AI-generated legal case—Hauter v. DeWitt. The case did not exist, and despite multiple opportunities, the attorney failed to acknowledge the mistake until compelled by the court. He later admitted the error stemmed from using an AI tool called "Archie," which mistakenly inserted the false citation. The court fined the attorney $2,000, and Judge Goffinet reported him to the ARDC. The incident underscores the need for lawyers to verify AI-generated content and to take responsibility for errors.
The Cost of Doing Business By Michael G. Cortina September 2025 Learn more about the control banks have when responding to third party requests for documents and information, and how creditors should tailor their citations to banks as much as possible. 
Deepfakes in the Courtroom: Problems and Solutions By George Bellas March 2025 “Deepfakes” are altered or completely fabricated AI-generated images, audio, or video, that are also extremely realistic, making them difficult to discern from reality. In a sense, they’re AI’s version of photoshopping. Lawyers need to educate themselves and their firms on what deepfakes are and how to spot them, develop a healthy skepticism of content they encounter, and question its source. Take nothing at face value, and closely scrutinize details of that content to look for anything inconsistent with reality, such as people with more or less than five fingers.
Don’t Get Burnt in the Heat By Judge Michael J. Chmiel July 2025 A note from Judge Michael J. Chmiel regarding the upcoming bar year. 
The End Is Near By Hon. Michael J. Chmiel November 2025 An introduction to the current issue and a nod to the close of 2025. 
Frequently Asked Questions and Suggested Best Practices Related to Generative Artificial Intelligence in the Legal Profession By Carolyn Elefant November 2025 AI in the practice of law is becoming unavoidable--familiarize yourself with obligations that may arise with usage of AI in your practice, including copyright, plagiarism, disclosure, privacy and confidentiality, duty to supervise, and legal ethics. 
Help Your Client (And Yourself) Stay Out of Hot Water — What to Look for When Preparing a Case to Make Sure Disclosures Are Complete and Discharge Is Not in Jeopardy By Andrew S. Erickson March 2025 As a Chapter 7 panel trustee, the author shares issues they have encountered for practitioners to consider. The author stresses the importance of actually looking at the records provided by the client and asking follow-up questions on anything that is unclear prior to filing. 
1 comment (Most recent April 1, 2025)
Hyman’s Holdings: Knowing When To Stand Firm By Justice Michael B. Hyman November 2025 In his new column, Hyman's Holdings, featured in the Civil Practice & Procedure Newsletter, Justice Hyman explores various topics related to the legal profession. 
ISBA 2025 Solo and Small Firm Conference Photos November 2025 The Illinois State Bar Association hosted the 2025 Solo and Small Firm Conference: The Innovative Lawyer: Smart Strategies for Small Firms in the Age of AI on September 25–26 at the Embassy Suites in Naperville, IL.
Join Us at the ISBA & IJA Midyear Meeting—a Taste of What’s Ahead By Ted M. Niemann November 2025 The Joint Midyear Meeting, hosted by the Illinois State Bar Association and the Illinois Judges Association, is a can't-miss event, offering CLE programs on democracy preservation and the ethical use of AI; a Member Appreciation Reception featuring Glow Bingo and prizes; the Illinois Bar Foundation for the Champions Breakfast; the IJA/ISBA Joint Midyear Meeting Luncheon; and a Holiday Reception honoring the Supreme Court of Illinois. Register today! 
Judgments in Illinois: What Attorneys Need To Know About Confession, Revival, and Enforcement By Julia Jensen Smolka November 2025 Familiarize yourself with collection procedures to best serve your clients.  This article examines judgment collection, including confessions of judgment, vacating a judgment, reviving dormant judgments, bankruptcy, and pre-judgment attachment.
1 comment (Most recent November 19, 2025)
LAWPAC Needs You! March 2025 The Illinois Lawyers’ Political Action Committee (LAWPAC) needs your help to fulfill its mission to support the legislative goals of the ISBA and Illinois’ legal community.
Lender Is Entitled to a Prepayment Penalty Equal to the Amount of Bid at Foreclosure Sale By Kevin J. Stine March 2025 The Appellate Court in Wilmington Trust, National Association v. Thor Palmer House Retail, LLC, 2025 IL App (1st) 241085, No. 1-24-1085 (February 20, 2025) affirmed that a lender is entitled to charge a prepayment penalty as provided for in the loan documents equal to the amount bid at the foreclosure sale.
Note Is Unenforceable but the Lien on the Property Remains Valid By Robert Handley September 2025 A summary of Chicago Title Land Trust v. Sara Watkin, 2025 IL App (1st) 241354, and lessons learned about the validity of notes and liens on property. 
Now Comes the Spring By Hon. Michael J. Chmiel March 2025 An introduction to the issue from the editor.
Observations From a Judge on Collection Litigation, and Perhaps All Litigation By Hon. Michael J. Chmiel November 2025 An insightful behind the scenes look at thoughts from a 21-year-tenured judge in the 22nd Judicial Circuit Court regarding time standards, technology, mentorship, and standing orders. 
1 comment (Most recent November 27, 2025)
Passing Judgment on the Consumer Debt Judgment Statute By Keith Barnstein September 2025 There is not a legal presumption that any particular debt is a consumer debt judgment. Therefore, absent an evidentiary finding by the trial court, a judgment should not automatically be assumed to be a consumer debt judgment.
Public Act 104-0120: Amendments to the Code of Civil Procedure By Robert G. Markoff September 2025 Public Act 104-0120 amends certain sections of the Illinois Code of Civil Procedure, including provisions relating to small claims, citations to discover assets, revival of judgments, garnishment, and exemptions.
Read the Contract Before You Sign By David C. Brezina July 2025 A cautionary tale from four cases that remind practitioners to "read the contract."
Recent Amendments to the Illinois Biometric Information Privacy Act By Nikhil A. Mehta July 2025 The recent amendments bring significant changes, particularly with respect to liability and consent procedures, which will impact businesses, privacy advocates, and legal professionals alike. The amendments are codified in Illinois Public Act 103-0666. 
Representing Creditors in Bankruptcy: Key Considerations for Effective Representation By Julia Jensen Smolka March 2025 This article examines prohibited activities under Section 362(a), including the nuances of filing mechanics liens, modifying the stay, the implications of preferences, and the motions creditors may file to protect their interests.
Statute of Limitations for Line of Credit Is 5 Years? By Kevin J. Stine July 2025 In BMO Bank N.A. v. Zbroszczyk, the Illinois Appellate Court recently affirmed dismissal of a mortgage foreclosure action based on a revolving line of credit. 
The Transient Debtor and the Debtor’s Homestead Exemption By Laura E. Richardson November 2025 Courts are split regarding the application of extraterritorial exemption law in bankruptcy cases. As the population becomes more migratory, bankruptcy practitioners should be cognizant of the laws surrounding transient debtors who may be filing bankruptcy in a new state. 
Turn On Your Video! By Judge James A. Shapiro & Thomas DeMouy May 2025 Few things are more annoying to a judge than when we can't see the litigant or lawyer we are addressing (or who is addressing us). I once heard a judge describe it on Zoom as the equivalent of "hiding under the benches in court." During the height of the pandemic, there were judges who were not turning on their video as well. Without naming names, my former presiding judge once had to remind everyone in the division to turn on their videos. To a self-represented litigant–much less a lawyer–it must be like addressing the Great Oz in The Wizard of Oz: "Pay no attention to that man behind the curtain!" Pay no attention to that judge on the blank screen. It was inexcusable and unacceptable.
Using AI to Help Run Your Law Practice By Claudia Badillo May 2025 A seasoned consumer bankruptcy attorney describes how they overcame reluctance to use AI tools in their legal practice, particularly for improving client communication in Chapter 13 bankruptcy cases. Struggling to clearly convey complex legal obligations to clients post-filing, the attorney used ChatGPT to generate a comprehensive FAQ section for their website.