Update: Supreme Court Resolves Circuit Split Regarding Pre-Bankruptcy Seizure
By EsqSocial Corporation 21/01/21
In 2019, we began following a Circuit split regarding a secured creditor’s obligation to return collateral that it lawfully repossessed pre-petition after receiving notice of a debtor’s bankruptcy filing. In our prior posts, which you may wish to review and can find here and here, we explained that the Third Circuit, joining the minority of courts to have ruled on the issue, held in November 2019 that a creditor does not violate the stay if it retains estate property until the debtor seeks...
By: Patterson Belknap Webb & Tyler LLP