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Section 362

Mayer Brown

How the Automatic Stay in Bankruptcy Can Affect Net Asset Value Facilities

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Executive Summary - In net asset value (NAV) facilities, the borrowing capacity typically adjusts to reflect changes to the value of the underlying investment portfolio, and borrowers face the risk of potential borrowing...more

Troutman Pepper

High Court Bankruptcy Ruling Is a Warning to Joint Obligors

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In a unanimous decision, the U.S. Supreme Court held that Section 523(a)(2)(A) of the U.S. Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor's own culpability. ...more

International Lawyers Network

Bankruptcy Proceedings in the United States (Updated)

General Overview of the Primary Protection Granted to a Debtor Under the United States Bankruptcy Code - The United States Bankruptcy Code, through its various chapters, governs bankruptcy and reorganization for...more

Smith Debnam Narron Drake Saintsing & Myers,...

Debtor’s Counsel Failed to Mitigate Attorneys’ Fees Incurred for § 362(k) Violation by Rejecting Settlement Offer; Proceeding to...

Section 362(k) of the U.S. Bankruptcy Code entitles an individual injured by a willful violation of the automatic stay to recover actual damages, including costs and attorneys’ fees, as well as punitive damages in appropriate...more

Stark & Stark

What to do When Your Franchisee Files for Bankruptcy

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With the economic downturn caused by COVID-19, many expected a tidal wave of commercial bankruptcy filings. After an initial spike of retail bankruptcy cases at the outset of the pandemic, the onslaught of bankruptcy has not...more

McGlinchey Stafford

Repossessions and Bankruptcy Post-COVID, Post-Fulton [More with McGlinchey, Ep. 26]

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COVID-19’s economic impact on borrowers’ ability to repay loans has had major repercussions for auto lenders, and the U.S. Supreme Court recently issued a decision relating to repossessions in bankruptcy. In this episode of...more

McGlinchey Stafford

Repossessions And bankruptcy: What The Fulton Decision Means For Turnover

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The February Supreme Court decision in City of Chicago v. Fulton was widely celebrated in the lending community because the court found that a lender who repossesses a vehicle before a borrower files for bankruptcy is not in...more

McGlinchey Stafford

Vehicle Finance Lenders Beware: The Coming Wave Of Post-Fulton Automatic Stay And Turnover Adversary Proceedings

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By now, you likely are aware of the recent Supreme Court decision in City of Chicago, Illinois v. Fulton. The Court rightly found that merely retaining possession of a vehicle repossessed pre-petition is not a violation of...more

Foster Swift Collins & Smith

Supreme Court Holds that “Mere Retention” of Estate Property After Bankruptcy Filing Doesn't Violate the Automatic Stay

On January 14, 2021, the U.S. Supreme Court decided City of Chicago, Illinois v. Fulton (Case No. 19-357, Jan. 14, 2021), a case which examined whether merely retaining estate property after a bankruptcy filing violates the...more

Kaufman & Canoles

Bankruptcy & Creditors’ Rights Alert – February 2021

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RETAINING POSSESSION OF A VEHICLE DOES NOT VIOLATE THE AUTOMATIC STAY – CHICAGO V. FULTON - The Supreme Court of the United States recently offered some clarity on one of the many issues creditors face when a borrower,...more

Partridge Snow & Hahn LLP

The Supreme Court Teaches A Lesson In Passive Non-Aggression: City of Chicago v. Fulton

In a recent decision, the U.S. Supreme Court gave a narrow win to creditors in a dispute over the proper interpretation of the automatic stay provisions in the Bankruptcy Code, ruling that creditors may passively retain a...more

Troutman Pepper

Supreme Court Rules that Possession of Estate Property Does Not Violate Automatic Stay

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On January 14, the Supreme Court ruled that more than a mere retention of estate property is needed for a party to violate the automatic stay, vacating and remanding a decision by the U.S. Court of Appeals for the Seventh...more

Foster Garvey PC

Supreme Court Clarifies That Section 362(a)(3) Does Not Prohibit the Mere Retention of a Debtor’s Property

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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...more

Jones Day

U.S. Supreme Court: Mere Retention of Property Does Not Violate the Automatic Stay

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The Situation: Circuit courts were split on whether mere retention by a creditor of estate property violates the Bankruptcy Code's automatic stay, under 11 U.S.C. § 362(a)(3). The U.S. Supreme Court considered the question in...more

Mitchell, Williams, Selig, Gates & Woodyard,...

To Return or Not To Return. That Is The Question.

Most lawyers and bankers understand the basic terms of the automatic stay when a Debtor files bankruptcy. 11 USC section 362 applies to all bankruptcy chapters and provides as follows: (a)Except as provided in subsection...more

Cranfill Sumner LLP

United States Supreme Court Sharpens the Contours of the Automatic Stay

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The City of Chicago found itself at the Supreme Court of the United States.  The City had refused to accede to demands by debtors in bankruptcy to turn over the debtors’ impounded cars which, at least prima facie, belonged to...more

Snell & Wilmer

Delaware Bankruptcy Court Provides Guidance on the Scope of The Automatic Stay

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On December 3, 2020, the United States Bankruptcy Court for the District of Delaware entered an opinion in In re Extraction Oil & Gas, Inc., Case No. 20-11548 (CSS), holding that two entities (the “State Court Plaintiffs”)...more

Moritt Hock & Hamroff LLP

Supreme Court Breaks Divide: Mere Retention Of Debtor Property Is Not A Stay Violation

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...more

Carlton Fields

Can Doing Nothing as a Creditor Get You Sanctioned – In re Fulton Part II

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In a prior post, we discussed the In re Fulton case — in which the Seventh Circuit Court of Appeals ruled that creditors that seize debtors’ property prior to the debtor filing bankruptcy are required to return the property...more

Harris Beach PLLC

Supreme Court Holds Creditor Retention of Debtor’s Property Does Not Violate "Automatic Stay"

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The Supreme Court of the United States recently issued a decision regarding the scope of the “automatic stay” codified at section 362 of the Bankruptcy Code. By way of background, the filing of a bankruptcy petition...more

Mintz - Bankruptcy & Restructuring Viewpoints

The Automatic Stay: Supreme Court Finds that Retaining Debtors’ Property, Despite Turnover Demands, is Not a Stay Violation

If a creditor is holding property of a party that files bankruptcy, is it “exercising control over” such property (and violating the automatic stay) by refusing the debtor’s turnover demands? According to the Supreme Court,...more

Smith Debnam Narron Drake Saintsing & Myers,...

Mere Retention of Property of the Estate Does Not Violate the Automatic Stay

The Supreme Court of the United States has resolved a split in the circuits as to whether an entity that is passively retaining possession of property in which a bankruptcy estate has an interest has an affirmative obligation...more

Clark Hill PLC

Supreme Court Holds that Mere Retention of Property Does Not Violate the Automatic Stay

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The Supreme Court of the United States on January 14, 2021, issued a decision in the case of City of Chicago v. Fulton that favors creditors in a bankruptcy case. The Court held that a creditor’s “mere retention” of property...more

McGlinchey Stafford

Florida Real Property And Business Litigation Report, Volume 14, Issue 3

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City of Chicago v. Fulton, Case No. 19–357 (2021). The mere retention of estate property after the filing of a bankruptcy petition does not violate the automatic stay under 11 U.S.C. §362(a)(3) of the Bankruptcy Code. ...more

Nelson Mullins Riley & Scarborough LLP

Supreme Court: Merely Holding Property Isn’t a Violation of the Automatic Stay

In City of Chicago, Illinois v. Fulton, No. 19-357, 2021 WL 125106, at *1 (U.S. Jan. 14, 2021), the United States Supreme Court considered the issue of whether the mere retention of estate property after the filing of a...more

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