The Southern District of Illinois offers a database of opinions. These opinions were entered between the period of 2/1987 and the present. To conduct a detailed search, enter a keyword or case number in the search box to the right.


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Date Filedsort descending Summary Case Number PDF

In re: Lisa and Daniel Garrett 17-40064

Summary: Creditor filed a motion to set off a potential award in debtors' favor in District Court litigation against creditor's claim in debtors' chapter 7 bankruptcy proceeding. Debtors objected on the basis that the creditor could not set off its potential debt to debtors against a debt that was discharged in bankruptcy. The Court held that debtors lacked standing to object. The Court further held that even assuming debtors had standing, setoff was appropriate. Debtors’ counter claims and third party claims in the District Court litigation became an asset of the bankruptcy estate, and the creditor had a right to set off its claim in the bankruptcy case against any recovery the estate might receive in the District Court litigation.

17-40064 View

In re: Tenholder et al v. United States of America, Internal Revenue Service

Summary: At issue was whether the Debtors’/Plaintiffs’ income tax debt for tax year 2011 was dischargeable under 11 U.S.C. § 507(a)(8), which provides that a tax for which a return is last due after three years before the date of the filing of a bankruptcy petition is dischargeable. However, located at the end of §507(a)(8) is the so called “flush language,” which tolls the three year period for any period during which a governmental unit is prohibited under applicable non-bankruptcy law from collecting a tax as a result of a request by the debtor for a hearing and an appeal of any collection action taken or proposed against the debtor, plus 90 days. Both parties were in agreement that if the three year period was tolled, then the debt was non-dischargeable. They also agreed on the opposite. The Debtors/Defendants requested a collection due process hearing pursuant to 26 U.S.C. § 6330 to determine their tax liability, which prohibited the Defendant from collecting this tax by levy during the pendency of the collection due process hearing. The Debtors/Plaintiffs argued that the Defendant must be completely prohibited from collecting the tax in order to invoke the “flush language” of § 507(a)(8). However, the Court held that the Defendant’s inability to collect the tax by levy was enough to toll the three year time period for determining dischargeability, and therefore the debt to the Internal Revenue Service for the Debtors’/Plaintiffs’ 2011 income tax is non-dischargeable.

17-03021 View