When individuals declare bankruptcy, their creditors are often left without meaningful recovery. That is not always the case when it is possible to argue that the debtors are not entitled to the protections of bankruptcy law. Following a bench trial in the United States Bankruptcy Court for the Central District of Illinois, Tomlinson & Shapiro partners Michael Tomlinson and Michael Shapiro won a ruling denying a bankruptcy discharge to individual debtors.
The federal judge found in favor of the firm’s clients under section 727 of the Bankruptcy Code, concluding the firm proved the debtors had lied under oath and improperly concealed records. As a result, the firm’s clients were able to pursue their fraud, Illinois Business Corporation Act, and breach of fiduciary duty claims. Michael Tomlinson was first chair at trial and successfully argued the case on behalf of the firm’s clients.