2 Stocks That Offer More Bang for Your Stimulus Buck fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
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 after the bankruptcy filing and that the Supreme Court granted certiorari to review the case. The Supreme Court recently entered its opinion overturning the Seventh Circuit and holding that merely retaining property of a debtor’s bankruptcy estate does not, itself, violate the automatic stay imposed by Section 362 of the Bankruptcy Code.
Fulton arose from a consolidation of four similar cases in which soon-to-be-debtors’ cars were impounded by the city of Chicago for unpaid traffic/parking citations. The debtors eventually filed bankruptcy and sought the return of their cars. After the city refused, the debtors argued that the automatic stay imposed by Section 362 required the city to return the cars, and they sought sanctions against the city for faili
On January 14, 2021, the U.S. Supreme Court issued an opinion addressing a split among circuit courts on whether an entity violates Section 362(a)(3) of the Bankruptcy Code’s automatic.
Advertisement
Stand Pat, Don’t Act: Supreme Court Holds That Mere Retention of Debtor Property Does Not Violate Section 362(a)(3) of the Bankruptcy Code’s Automatic Stay Provision Friday, January 22, 2021
On January 14, 2021, the U.S. Supreme Court issued an opinion addressing a split among circuit courts on whether an entity violates Section 362(a)(3) of the Bankruptcy Code’s automatic stay provision by passively retaining possession of a debtor’s property after a bankruptcy petition is filed. Section 362(a)(3) prohibits “any act . . . to exercise control over property” of the bankruptcy estate. 11 U.S.C. § 362(a)(3).
1 This “automatic stay” provision is automatically triggered once a bankruptcy case is commenced, and is intended to give the debtor a breathing spell from its creditors, including from any collection efforts, foreclosures, and other actions creditors may take against a debtor’s property. The question here was whether the autom
Author Bio
Began my career as a trader for NYC hedge fund Elliott Management. Worked for Bear, Stearns in London as a trader, then became an analyst at several hedge funds. Currently CFO for a mortgage bank. Also author a daily blog on real estate called The Daily Tearsheet www.thedailytearsheet.com Follow @TMFBrentNyitray
This year has been difficult for the financial sector. COVID-19 has caused problems for almost every firm with credit risk, especially banks and real estate investment trusts (REITs). About the only group that has done well is mortgage originators, who are having a year for the ages. Another that has done surprisingly well is auto finance.