GCK On Law
Courts Disagree Whether Unsecured Creditors can recover Post Petition Attorneys’ Fees
Courts have disagreed on the issue of whether an unsecured creditor can recover fees incurred post-petition. Compare, In re SNTL Corp., 380 B.R. 204 (9th Cir. BAP 2007) (unsecured creditor was entitled to include contract based attorney’s fees incurred post-petition...
Bankruptcy Courts Disagree on Limits to Debtors Amending Schedules Upon Reopening a Case
Bankruptcy Rule 1009(a) provides that schedules “may be amended by the debtor as a matter of course at any time before the case is closed.” This facially simple provision, however, has led to a split among the courts as to whether a debtor has an automatic right to...
2019 Illinois Tax Amnesty Program for Illinois Income Tax, Sales and Use Tax, Employment Tax, and Franchise Tax
On June 5, 2019, Governor J.B. Pritzker enacted legislation that provides Illinois taxpayers an opportunity to comply with previous tax obligations. The legislation establishes an amnesty program for “any tax” imposed by the State of Illinois and collected by IDOR...
Late filed returns may render tax obligations nondischargeable
Pursuant to Section 523(a)(1)(B)(i) and (ii) of the Bankruptcy Code: A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this [the Bankruptcy Code] does not discharge an individual debtor from any debt - (1) for a tax or custom duty - * * * * (B) with...
Breach of Contract Giving Rise to Section 523(a)(6) Nondischargeability
Section 523(a)(6) of the Bankruptcy Code excepts from discharge debts for "willful and malicious injury by the debtor to another entity or to the property of another entity." Whether a claim for breach of contract can give rise to Section 523(a)(6) exception to...