Spring has finally arrived in the Midwest! With the nicer weather and longer days we are finally able to tackle the projects that piled up like snow drifts during the colder months. This month we take a look at whether the do-it-yourself approach works when it comes to legal matters your business may face.
IICLE Secured Transactions
The Illinois Institute for Continuing Legal Education (IICLE) has released its Secured Transactions – 2016 Edition. Jeffrey Altshul not only served as one of three general editors, but also authored the chapter on Rights and Remedies upon Default. This is Jeff’s fourth time editing this essential guide which is used as a resource by professionals who need help negotiating commercial transactions relating to security interests and priority issues under UCC Article 9. The guide is available for purchase on IICLE’s website.
A debt associated with the purchase of a car that was to be used as an Uber vehicle was held to be dischargeable in a recent decision from the Bankruptcy Court for the Northern District of Illinois.
The Debtor, Rodriguez, thought that he could supplement his income by becoming an Uber driver. When he signed up, Uber directed Rodriguez to an auto dealer that it worked with and told him to purchase a larger vehicle suitable for Uber. Within a month of the purchase of the auto, Rodriguez decided that things did not work financially and filed for Chapter 7 relief.
The company that financed the car requested that Rodriguez reaffirm the debt but Rodriguez refused. After this refusal, the finance company filed an adversary proceeding to have the debt declared non-dischargeable based on false pretenses and other grounds. After a trial, the Bankruptcy Court found that even though Rodriguez filed for bankruptcy protection within a month of the purchase, the car had not been purchased under false pretenses, knowing that he would file. Rodriguez testified that he realized that the Uber program would not earn him sufficient money to afford the vehicle. The Court also pointed out that Uber sent Rodriguez to the dealership and had some sort of existing relationship with it. Based on all this, after a trial, the debt was declared dischargable. Read more on this case.