In the Matter of Kenneth Witte, Debtor-Appellant

FLAUM, Circuit Judge.

Kenneth Witte appeals from a judgment of the district court, reversing in part the bankruptcy court. The district court held that Witte remains liable on a judgment arising out of an installment land sales contract, notwithstanding the fact that the vendor opted to forfeit the contract and repossessed the property. This case raises an issue of first impression under Illinois law. We reverse.

I

On June 25, 1981, Kenneth Witte executed an installment sales contract with Louie Bral and Elizabeth Devlieger under the terms of which Witte agreed to purchase a 160-acre farm in…