Ch. 7 Ruling Protects Banks From Debtor-Account Dilemma

By Steven Wilamowsky and Bryan Jacobson (May 3, 2019, 2:55 PM EDT) -- On April 25, 2019, the U.S. District Court for the Southern District of New York reversed a bankruptcy court's finding that a bank's imposition of a freeze on a married couple's bank account upon the filing of their Chapter 7 bankruptcy petition, pending instructions from the Chapter 7 trustee, violated the automatic stay.[1] 

The district court held that it was not a violation of the automatic stay to deny the debtors access to funds in the account because, among other things, the funds became "property of the estate" as a result of the bankruptcy filing and were therefore subject to the...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Related Sections

Law Firms


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!