Bankruptcy proceedings can have long-term benefits

Chicago Bankruptcy Law Firm Covers Bankruptcy in the Wake of COVID-19 The COVID-19 pandemic has damaged the economy, leaving many families and business owners worried about how they will pay for even the most basic expenses. In the midst of this crisis, you might be considering filing for bankruptcy or wondering how COVID-19 will affect an existing bankruptcy filing. No matter your situation, Chicago Bankruptcy Law Firm of Daniel J. Winter is here to help give you the answers and assistance that you need. We are more than happy to explain to anyone in financial distress exactly what their options are. What Is Bankruptcy? Bankruptcy is a Federal system of laws, rules, and procedures designed to help legal residents of the U.S. deal with their debts, which, for whatever reason, individuals or businesses cannot pay as they are due. The most common types of Bankruptcy are for people (called Consumer Bankruptcies). Two major types of Consumer Bankruptcy are: Chapter 7 (liquidation or debt-elimination), Chapter 13 (wage-earner reorganization for individuals or people running unincorporated businesses). Chapter 11 is a type of Corporate Bankruptcy (reorganization for businesses and certain individuals with extremely large amounts of debt). The Chapter number refers to the section of the Bankruptcy law, called the Bankruptcy Code (which is in Title 11 of the U.S. Code). Bankruptcy cases almost exclusively fall under federal law, though states may pass laws governing issues that federal law doesn’t address. Special bankruptcy courts nationwide handle only debtor-creditor cases. Generally, any bankruptcy-related claim must be filed with the U.S. Bankruptcy Court.

Tests: Broken pipe didn’t pollute Georgia government center

Two courtrooms in Columbus’ main government building are reopening after tests found a ruptured pipe did not introduce mold or harmful fungi into the air. A ruptured drainpipe from the roof had dumped leaves, bird feces and other debris into the 11th-floor office of Muscogee County Superior Court Judge Gil McBride in June. Documents obtained by the Ledger-Enquirer show tests of pipe debris showed no fungi associated with bird and bat droppings that can cause infections in people with weakened immune systems. Samples also showed no significant amounts of mold. Mold levels in the outside air were higher, suggesting the building’s air filtration system is working. “The courts have been assured by the city that the courtrooms are safe for public use,” McBride wrote in a text message. “This is good news, especially for judges who were without courtrooms for next week.” The 51-year-old building flooded because of water leaks twice in 2018. Columbus leaders say they plan to ask voters to approve a special sales tax in November to repair or replace the building. A nearly 80-pound panel fell in a seventh-floor courtroom and hit a court official a few weeks ago, prompting safety inspections of all courtrooms. Columbus Mayor Skip Henderson could not be reached Friday for an update on inspections. McBride said Muscogee County jurors will continue to be selected at the municipal ice rink for now. Once jurors are selected, trials will take place in the regular courtrooms.

Supreme Court won’t revive school’s transgender bathroom ban

The Supreme Court on Monday rejected a Virginia school board’s appeal to reinstate its transgender bathroom ban. Over two dissenting votes, the justices left in place lower court rulings that found the policy unconstitutional. The case involved former high school student Gavin Grimm, who filed a federal lawsuit after he was told he could not use the boys bathroom at his public high school. Justices Samuel Alito and Clarence Thomas voted to hear the board’s appeal. The Gloucester County, Virginia, school board’s policy required Grimm to use restrooms that corresponded with his biological sex ? female ? or private bathrooms. Seven years ago, Grimm was barred from using the boys restroom when he was a 15-year-old student at Gloucester High School. He sued a year later, and his case has worked its way through the courts ever since. After learning that the Supreme Court refused to hear the case, Grimm, now 22, said that his long court battle is over. “We won,” he tweeted. “Honored to have been part of this victory,” he added. David Corrigan, an attorney for the school board, did not immediately respond to email and voice mail messages seeking comment. In its petition asking the Supreme Court to hear the case, the school board argued that its bathroom policy poses a “pressing federal question of national importance.” The board argued previously that federal laws protect against discrimination based on sex, not gender identity. Because Grimm had not undergone sex-reassignment surgery and still had female genitalia, the board’s position has been that he remained anatomically a female. The American Civil Liberties Union, which represented Grimm in his yearslong lawsuit against Gloucester, argued that federal law makes it clear transgender students are protected from discrimination.

Judge upholds dismissal of case against resort developer

A U.S. bankruptcy judge has upheld court decisions that the state of Montana lacked legal standing to file an involuntary bankruptcy petition nearly a decade ago against Yellowstone Club co-founder Tim Blixseth. Judge Mike N. Nakagawa of Nevada on June 3 confirmed the ruling by previous judges to dismiss the involuntary petition, noting the case has lingered for nearly 10 years. The 9th Circuit Court of Appeals ruled in 2019 the Montana Department of Revenue (MDOR) lacked legal standing to file an involuntary bankruptcy petition against Blixseth and referred the case to bankruptcy court to see if it should be dismissed. The Yellowstone Club, a private ski and golf resort in Big Sky founded by Blixseth and his now ex-wife in 1997, filed for bankruptcy in 2008. Blixseth was accused of pocketing much of a $375 million Credit Suisse loan to the resort and later gave up control of the enterprise to his ex-wife during their 2008 divorce. The club, which has touted billionaire Microsoft co-founder Bill Gates and former Vice President Dan Quayle as members, has emerged from bankruptcy under new ownership. The Montana Department of Revenue had done an audit of Blixseth and in 2009 said he owed $56.8 million in taxes, penalties and interest arising from eight audit issues, court documents stated. The Montana action against Blixseth is separate from Blixseth’s claims against Montana in Nevada for damages due to the involuntary petition , the Independent Record reported. In 2011, Montana joined with the Idaho State Tax Commission and the California Franchise Tax Board against Blixseth, however, those two states had settled agreements and withdrew from the petition, according to court documents. Nakagawa noted that as of the hearing date, close to a decade has passed since the Involuntary Petition was filed. He said that since April 20, 2011, only Montana has continuously pursued this issue against Blixseth. He said Yellowstone Club Liquidating Trustee apparently was interested in pursuing the involuntary proceeding against Blixseth, but gave up nearly two years before the 9th Circuit mandate was received by this bankruptcy court.

Ruling: Missed court date in Washington does not imply guilt

The Washington state Supreme Court this month unanimously rejected the notion that a man who skipped his court date could be presented as evidence that he felt guilty about the original crime. State Supreme Court justices agreed that criminalizing a single missed court date could disproportionately harm people of color, poor people or people without reliable transportation or scheduling conflicts due to child care or work, The Daily Herald reported. The ruling came less than a year after the state Legislature revised the bail jumping law, which gives people more time to respond to a warrant. Samuel Slater, 27, had one unexcused absence in his case, which predated the new law. Records show Slater was convicted of violating no-contact orders five times in five years, multiple driving offenses and domestic violence charges. He pleaded guilty in 2016 to assault in Washington state. A judge ordered him not to have contact with the woman, who was not identified, but he showed up within a day of being let out of jail. He was charged in 2017 with alleged felony violation of a no-contact order and felony bail jumping after missing a court date later in the year. Slater’s attorney, Frederic Moll, asked for separate trials on the counts. Snohomish County Superior Court Judge Anita Farris, a former public defender, found that the charges could be tried together for “judicial economy reasons” and that they were cross-admissible, meaning one could be used to prove the other. Judge Ellen Fair presided over the trial and agreed with Farris. State Court of Appeals judges also agreed. During the trial, deputy prosecutor Adam Sturdivant repeatedly noted how the defendant missed his court date, asking: “If he didn’t do it, why didn’t he show up for trial call a year ago?” Slater was found guilty on both counts and sentenced to more than two years in prison and a year of probation.

Justices consider hearing a case on ‘most offensive word’

Robert Collier says that during the seven years he worked as an operating room aide at Parkland Memorial Hospital in Dallas, white nurses called him and other Black employees “boy.” Management ignored two large swastikas painted on a storage room wall. And for six months, he regularly rode an elevator with the N-word carved into a wall. Collier ultimately sued the hospital, but lower courts dismissed his case. Now, however, beginning with a private conference that was scheduled for Thursday, the Supreme Court is considering for the first time whether to hear the case. (Although the court did not comment, the case remained on its calendar, which likely means it was discussed Thursday.) Focusing on the elevator graffiti, Collier is asking the justices to decide whether a single use of the N-word in the workplace can create a hostile work environment, giving an employee the ability to pursue a case under Title VII of the landmark Civil Rights Act of 1964. Already, the court’s two newest members, both appointed by President Donald Trump, are on record with seemingly different views. The case is also a test of whether the justices are willing to wade into the ongoing, complex conversations about race happening nationwide. The public could learn as soon as Monday whether the court will take Collier’s case. Jennifer A. Holmes, a lawyer with the NAACP Legal Defense and Educational Fund, which has urged the court to take the case, says she hopes the conversations taking place nationally will push the justices in that direction. Doing so gives the court an “opportunity to show that they’re not insensitive to issues of race,” Holmes said. And courts are “all the time” confronting workplace discrimination claims involving use of the N-word, she said. The question for the justices, she said, is just whether someone who experiences an isolated instance of the N-word can “advance their case beyond the beginning stage.” Two of the court’s nine justices have experience with similar cases.

Judge: Pretrial release OK for man accused in Capitol riot

A judge has ruled that one of two Oregon brothers accused in the insurrection at the U.S. Capitol will be released from custody Friday to a third-party guardian, where he will be on home detention and GPS monitoring pending his trial. U.S. District Judge Randolph D. Moss, of the District of Columbia, on Thursday granted Matthew Klein’s pretrial release to a Baker County couple after refusing to allow him to stay with his parents. Moss last week cited text messages that showed Klein’s mother and father warning Matthew’s younger brother and co-defendant Jonathanpeter Klein not to broadcast their roles, noting “braggers get caught,” according to court testimony and documents, The Oregonian/OregonLive reported. Matthew Klein, 24, and Jonathanpeter Klein, 21, both have pleaded not guilty to conspiracy to defraud the United States, aiding and abetting in the obstruction of an official proceeding, obstruction of law enforcement during civil disorder, destruction of government property, entering and remaining in a restricted building or grounds, and disorderly conduct in a restricted building or grounds. The judge ordered Matthew Klein to be released to a woman who is retired from Baker County government and lives with her husband, a prison guard at the Powder River Corrections Facility, court documents said. He’ll be released on Friday once he is fitted with a location monitoring device. Jonathanpeter Klein also has asked for pretrial release to a third-party guardian, under home detention and GPS monitoring. Federal prosecutors don’t object. His release hearing will be held in early June.