Loeb & Loeb Achieves Victory for a Pro Bono Client in the Bankruptcy Court

Loeb recently secured a remarkable pro bono victory for a debtor who had been sued in her bankruptcy case by a creditor seeking to except a large debt from her bankruptcy discharge.

Prior to Loeb’s involvement, the debtor filed a personal Chapter 7 bankruptcy case in the United States Bankruptcy Court for the Northern District of Illinois. A home remodeler that had been retained to repair the debtor’s property filed an adversary proceeding opposing discharge of the amounts it claimed were owed under a contract. The home renovator claimed that the contract had been induced by the debtor’s allegedly fraudulent statements, and therefore, under the bankruptcy code, that debt was non-dischargeable.  

At the outset of the litigation with the creditor, the debtor represented herself pro se.  The presiding bankruptcy judge recognized that justice required assistance for this debtor.  At the judge’s request, the Bankruptcy Court for the Northern District of Illinois’ Volunteer Attorney Panel recruited Loeb to represent the debtor.  As Loeb entered the case, it appeared the debtor would have an uphill battle obtaining the discharge she was seeking, and the plaintiff believed it was in a strong position to negotiate repayment of the debt.