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Bankruptcy doesn't eliminate judgment

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Indiana Lawyer Rehearing

The Indiana attorney general’s office doesn’t think the former East Chicago mayor hit with a $108 million racketeering judgment stemming from public corruption should be able to avoid paying back that amount by declaring bankruptcy.

On March 25, the state agency filed a 22-page complaint against ex-mayor Robert A. Pastrick in the U.S. Bankruptcy Court for the Northern District of Indiana, alleging that five provisions of the federal bankruptcy law exempt this debt from being eligible for discharge through bankruptcy.

A federal judge in March 2010 imposed the $108,007,584.33 judgment against Pastrick and his ex-aides, who admitted their roles in a “sidewalks for votes” scheme. That scheme involved using $24 million in public money to pay for sidewalks and concrete paving in exchange for votes in the city’s 1999 primary election. The AG’s office has been working to collect that money, but Pastrick in December filed for bankruptcy to avoid paying the amount.

In the new complaint, the AG’s office contends that Pastrick’s theft, abuse of power while in office, and federal racketeering means the $108 million can’t be dismissed through bankruptcy proceedings. The AG argues the debt shouldn’t be discharged because of U.S. Bankruptcy Code sections 523(a)(6), 523(a)(4), 523(a)(7), 523(a)(13), and 523(a)(2)(A).

The federal docket shows attorneys are still entering appearances and no future court hearings have been set.•

Rehearing "Bankruptcy delays collection effort" IL Jan. 5-18, 2011

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  1. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

  2. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  3. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  4. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

  5. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

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