The Far-Reaching Implications Of High Court Ch. 13 Ruling

Law360 (January 22, 2021, 3:50 PM EST) -- In City of Chicago v. Fulton,[1] a unanimous U.S. Supreme Court[2] decided that the automatic stay imposed by Section 362 of the Bankruptcy Code does not require entities lawfully in possession of the debtor's property to immediately return that property upon the commencement of a bankruptcy case.[3]

Specifically, the court held that the mere retention of estate property after filing a bankruptcy petition does not violate the automatic stay against acts to obtain possession or exercise control of estate property under Section 362(a)(3).

Instead, the court held that the natural reading of the stay imposed by Section 362(a)(3) prohibits only affirmative...

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!

TRY LAW360 FREE FOR SEVEN DAYS

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?
Beta
Ask a question!