Landsman Saldinger Carroll (LSC) is proud to announce a significant trial victory by Richard Saldinger on behalf of our client in a trial recently conducted before the United States Bankruptcy Court for the Northern District of Illinois.
At issue was whether a judgment debt exceeding $1.1 million owed to our client could be discharged through bankruptcy. In August 2022, our client prevailed in a state court trial – also with Richard Saldinger as lead counsel – and obtained a judgment against the defendant in excess of $1.1 million. Shortly thereafter, the defendant in the state court trial filed for personal bankruptcy and attempted to have the $1.1 million judgment debt discharged through the bankruptcy proceedings.
With Richard Saldinger continuing as lead counsel, our client filed an adversary proceeding in the Bankruptcy Court seeking a finding that the debt could not be discharged because the debtor procured the loan and obtained the funds from LSC’s client through false pretenses including misrepresentations about the purpose of the loan, the debtor’s financial condition and the debtor’s ability to repay the loan.
On June 25, 2025, our client’s claims were tried and heard by Bankruptcy Judge Jacqueline P. Cox. On September 17, 2025, Judge Cox issued a memorandum opinion ruling in favor of LSC’s client and holding that the debt owed to our client was non-dischargeable under 11 U.S.C. §§ 523(a)(2)(A) and (B).
The Bankruptcy Court found, among other things, that:
- The debtor’s statements regarding the purpose of the loan were false and made with the intent to defraud;
- His representations about having sufficient assets and net worth to guarantee repayment were materially false; and
- Our client justifiably relied on these misrepresentations when extending the loan.
As a result, the judgment debt – in an amount in excess of $1.1 million – owed to LSC’s client will not be discharged in bankruptcy and remains enforceable.
Why This Matters
This case highlights the importance of holding individuals accountable when they attempt to misuse bankruptcy as a shield against fraudulent conduct. At LSC, we bring our depth of experience in business litigation, financial and securities fraud, and creditor’s rights to ensure that our clients’ interests are fully protected, both in state court and in federal bankruptcy court proceedings. Congratulations to Richard Saldinger on his trial victory.
