Supreme Court Breaks Divide: Mere Retention Of Debtor Property Is Not A Stay Violation
By EsqSocial Corporation 27/01/21
The United States Supreme Court has resolved a split among lower courts on the issue of whether a lessor who repossesses debtor collateral on eve of bankruptcy violates the automatic stay by failing to surrender such property immediately following the bankruptcy filing. In City of Chicago, IL v. Fulton, 141 S.Ct. 585 (2021), the Court ruled unanimously that retaining possession of a debtor’s property after a bankruptcy filing is not an act to exercise control over the bankruptcy estate...
By: Moritt Hock & Hamroff LLP