Supreme Court Clarifies That Section 362(a)(3) Does Not Prohibit the Mere Retention of a Debtor’s Property
By EsqSocial Corporation 04/02/21
The Supreme Court has lowered (but not eliminated) the risk that a creditor violates the automatic stay by retaining a debtor’s property post-petition. On January 14, 2021, the Supreme Court ruled 8-0 (Justice Barrett abstaining) that the “mere retention” of a debtor’s property does not violate section 362(a)(3) of the Bankruptcy Code. Chicago v. Fulton, 2021 WL 125106 (Jan. 14, 2021). The Supreme Court’s ruling resolves a longstanding circuit split regarding whether section 362(a)(3) imposes an...
By: Foster Garvey PC