ee4c3a84_United_States_Bankruptcy_Court__Summary
[Date Filed] 08/28/2014 [Case Number] 13-31378 [PDF] View [Summary] 
In re: Schablowsky Summary: The debtors objected to a secured claim filed by FLS Physical Therapy Associates, PC (FLS) alleging that a lien claimed by FLS in an award the debtors had received from the Client Protection Fund of the Illinois Attorney Registration and Disciplinary Commission was invalid. The debtors asserted that no lien can be perfected against awards under the Client Protection Fund. The debtors further asserted that FLS had likewise failed to perfect a lien on settlement funds from a pre-petition personal injury action which had been wrongfully converted by their personal injury attorney. The Court held that under Illinois Supreme Court rules there can be no lien in favor of a third party on awards under the Client Protection Fund. The Court further held that FLS had failed to perfect a lien under 770 ILCS 23/10 (The Illinois Health Care Services Lien Act) on the settlement funds of the debtors’ personal injury action. The Court sustained the debtors’ objection as to FLS’ secured claim but allowed FLS an unsecured claim in the amount of $10,947.17.
Opinions | Southern District of Illinois | United States Bankruptcy Court
Summary