Bankrupt Atty Can't Shield Home After $1M Malpractice Loss

Law360 (August 5, 2019, 8:27 PM EDT) -- The Seventh Circuit said Monday that an Illinois lawyer can't shield his home in his Chapter 7 liquidation to protect it from a lien held by a former client who won a $1 million default judgment in a malpractice case.

Reversing an Illinois district court, the Seventh Circuit said Illinois law is clear that attorney Scott Jaffe can't protect his home from bankruptcy creditors, including former client Laverne Williams, who sued him for malpractice after he represented her in a medical malpractice suit. Williams won a $1 million default judgment against him, and recorded a lien on his property.  The panel's opinion...

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