(United States Seventh Circuit) – Affirmed. A bankruptcy judge did not commit clear error in finding that a trustee’s distributions to a third party while the company was insolvent were gratuitous, and there was no reason to overturn the imposition of discovery sanctions against the trustee.
(United States Seventh Circuit) – Affirmed. The Illinois Child Care Assistance Program could not collect overpayments made to debtors under the Supplemental Nutrition Assistance Program who filed for bankruptcy.
(United States Seventh Circuit) – Held that the City of Chicago violated the Bankruptcy Code’s automatic stay when it continued to hold debtors’ impounded vehicles until they paid their outstanding parking tickets. The city must return the vehicles to the debtors, the Seventh Circuit concluded in these four consolidated Chapter 13 bankruptcy cases.
(United States Seventh Circuit) – Held that bankruptcy debtors could not appeal the denial of their motion for sanctions, because they had not filed a petition for permission to appeal, as required under Federal Rule of Bankruptcy Procedure 8006(g). Criticized two circuit precedents that appeared to recognize exceptions to this procedural requirement.