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No bankruptcy abuse by ex-mayor

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Indiana Lawyer Rehearing

Reversing her earlier decision, U.S. Bankruptcy Trustee Nancy Gargula in the Northern District of Indiana determined March 7 that former East Chicago Mayor Robert Pastrick’s income is not too high to qualify for Chapter 7 bankruptcy and his filing should not be considered to be an abuse of the process.

That decision comes in an ongoing legal battle between the ex-mayor and state of Indiana. The Indiana attorney general’s office is trying to collect a $108 million judgment issued last year against the former political titan in a racketeering judgment. The trustee ruled Feb. 7 that based on an initial review of documents, there was presumed abuse in Pastrick’s bankruptcy case filed in December. She had 30 days to file a motion to dismiss the Chapter 7 case or convert it to a category that required repayment, but she changed her stance after reviewing the case material and other documents filed since then.

Responding to the trustee’s finding, the AG’s office issued a statement saying this doesn’t change the state’s position that the full racketeering judgment isn’t dischargeable by bankruptcy. Details haven’t been finalized on what would happen to any funds collected in this case, spokesman Bryan Corbin said, but he noted the AG’s office routinely collects debts and judgment amounts on behalf of government clients and has a process for handling that money.

The $108 million judgment stems from a sidewalks-for-votes scheme that played out in the 1999 Democratic mayoral primary election, to which Pastrick and two of his top aides admitted. Last year, U.S. Senior Judge James Moody issued a ruling in State of Indiana and City of East Chicago v. Robert A. Pastrick, et al., No. 3:04-CV-506, ordering the $108 million in damages. That collection activity has been put on hold by these bankruptcy proceedings.

 

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

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  1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

  2. Been there 4 months with 1 paycheck what can i do

  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

  4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

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