Former Mayor Robert Pastrick Makes Too Much to File Chapter 7
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Former East Chicago mayor doesn't qualify for Chapter 7 bankruptcy


February 07, 2011

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Former East Chicago mayor doesn't qualify for Chapter 7 bankruptcy

Former East Chicago Mayor Robert Pastrick, who filed for Chapter 7 bankruptcy in December following an effort by the state of Indiana to collect a $108 million judgment for racketeering, will not be able to complete the filing under Chapter 7 of the bankruptcy code.

Federal court documents indicate that a trustee has detected abuse in Pastrick's filing, according to The Associated Press. A spokeswoman for the Executive Office of U.S. Trustees said that an example of abuse in the bankruptcy filing would be if the debtor's monthly income is too high, though she did not comment on the Pastrick case specifically.

Pastrick's original bankruptcy filing listed $650,000 in assets, but he has since claimed that a large portion of these assets should be exempt from liquidation. The bankruptcy trustee now has 30 days to either dismiss the bankruptcy or convert it to a Chapter 13 case, which involves a repayment plan under which Pastrick would have to pay his creditors.

Indiana Attorney General Greg Zoeller continues to claim that the civil judgment for racketeering that Pastrick faces cannot be dismissed through bankruptcy, the Northwest Indiana Times reports. Pastrick originally had the multi-million dollar judgment levied against him for a scheme in which he allegedly financed new sidewalks for East Chicago residents in exchange for their vote.

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