Changes in bankruptcy information and forms in 2018 – after-acquired property

There will be many changes in Illinois law in 2018, from eviction to custody of pets in dissolution cases.

There will also be some changes in federal Chapter 13 cases filed or converted after the new year, too.

In all chapter 13 cases filed on or after January 1, 2018 (and in any case that converts to chapter 13 on or after January 1, 2018), the following additional language will be added to the confirmation order:

“Interests in property acquired or received after the commencement of the case:  Should the debtor(s) acquire or receive any interest in property of more than nominal value, even if such value is unknown/undetermined/unliquidated (for example, lawsuit settlement, class action settlement, worker’s compensation claim, inheritance, life insurance proceeds, etc.), debtor(s) shall immediately file the appropriate amended schedule(s) to disclose the acquisition or receipt of the same.  Absent further Order of this Court, such property, whether or not disclosed on amended schedules or otherwise, shall constitute disposable income, the value of which must be paid into the debtor(s)’ plan as a payment under the plan for the benefit of allowed general unsecured claims.”

Also, within four months of the completion of a Chapter 13, a debtor is required to sign a sworn affidavit stating he or she has not “acquired nor received, prior to or since the filing of this case, any right and/or interest in property of more than nominal value, other than that which was previously disclosed on any applicable Schedule A/B (formerly Schedules A & B). This includes, but is not limited to, any right or interest in a claim or cause of action in any civil proceeding, regardless of whether or not such civil action has been commenced or settled.”

Note that any such after-acquired property in a Chapter 13 has been considered property of the estate and must be submitted to the Trustee as income for some years now, it will now be more formalized.


Michael Curry is the author of helpful ebooks on bankruptcy and debt relief, available on Kindle: What Bankruptcy Can Do, What Bankruptcy Can’t Do and Finally Be Financially Free.

At Curry Law Office in Mount Vernon, IL, we are here to help you through your financial difficulties. Our down-to-earth bankruptcy attorney offers common sense advice and solutions for your bankruptcy filing.

Debt problems come in all shapes and sizes. For some of our clients, the issue that drives them to seek a lawyer’s advice is mounting credit card bills. For others, it may be an abusive creditor or a home foreclosure. At Curry Law Office in Mount Vernon, IL, we offer a free debt-relief planning session to discuss your financial problems and identify solutions. Call or text today (618) 246-0993 or email Finally Be Financially Free by calling now.




What is property of the estate: current case law

As a bankruptcy attorney in Mount Vernon, IL for over 20 years, I read through and analyze court rulings throughout the country, and pay particular attention to cases close to home!

It is brought to you by Consumer Bankruptcy Abstracts & Research ( and the National Consumer Bankruptcy Rights Center (


Property of the estate: Because, on the petition date, a cause of action by the Chapter 7 debtor was barred by the statute of limitations, neither the cause of action nor a payment offered to the debtor in connection to the personal injury he suffered were property of the estate, and the Chapter 7 trustee had no authority to administer the payment on behalf of the debtor’s creditors. In re Cibella, 560 B.R. 494 (Bankr. N.D. Ohio Nov. 18, 2016) (case no. 4:08-bk-41807).

Property of the estate—Avoidance of lien impairing exemption: Reversing In re O’Sullivan, 544 B.R. 407 (8th Cir. B.A.P., Jan. 19, 2016), the Eighth Circuit Court of Appeals emphasized that there is a distinction between an extant but unenforceable lien and a non-existent lien for the purpose of avoidance of the lien under Code § 522(f)(1). When state law does not allow a lien to attach to exempt property, § 522(f) is superfluous and without application. In re O’Sullivan, 841 F.3d 786 (8th Cir. Nov. 14, 2016) (case no. 16-1526).

Reopening of case: The bankruptcy court abused its discretion in denying the debtor’s motion to reopen a Chapter 7 case that had been closed for nearly four years. While the debtor sought relief—avoidance of judicial liens on his residence—that he could have pursued while the case was open, delay alone did not necessarily constitute prejudice. There had been no objection by the creditors holding the judicial liens, and the bankruptcy court did not find that any prejudice would result from the reopening of the case. In re McCoy, 560 B.R. 684 (6th Cir. B.A.P., Nov. 29, 2016) (case no. 15-8056).


About the blogger:

Michael Curry of Curry Law Office in Mount Vernon, Illinois ( has helped thousands of individuals, family and small businesses in southern Illinois find protection under the Bankruptcy Code for almost twenty-five years. He is also available to help individuals and families with their estate planning (wills, power-of-attorney) and real estate and other sales transactions.

He is also the author of books on finance and bankruptcy available on Kindle through Amazon!

Whether you live in Salem, Centralia, Nashville, Fairfield, Cisne, Carmi or anywhere in Southern Illinois call Curry Law Office today at (618) 246-0993 and Finally Be Financially Free!

You can also find his website at