Major Alert: CRLTO 5-12-080 (security deposit) judgments not dischargeable by landlords in bankruptcy

security deposit judgment not dischargeable in bankruptcyA new case published on October 14, 2011 by the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division indicates that a judgment obtained by a tenant against a landlord for various violations of Section 5-12-080 of the Chicago Residential Landlord Tenant Ordinance is not dischargeable in bankruptcy as it constitutes “defalcation while acting in a fiduciary” under 11 U.S.C. Section 523(a)(4).  The case is Kennedy v. Frempong and was issued within the broader federal Bankruptcy case: In re Maxwell Kofi Frempong as adversary case 10 A 011773.

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