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. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  2. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  3. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  4. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  5. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.