Tenth Circuit Holds that Creditors Can Retain Repossessed Cars Post-Bankruptcy

According to a post disseminated today (Rochelle's Daily Wire) by the American Bankruptcy Institute, "the Tenth Circuit widened an existing split among the courts of appeals by ruling that passively holding an asset of the estate, in the face of a demand for turnover, does not violate the automatic stay in Section 362(a)(3) as an act to "'exercise control over property of the estate.'” The article goes on to state that "[t]he Tenth Circuit allied itself with the District of Columbia Circuit. The Seventh, Second, Ninth and Eighth Circuits are arrayed on the other side and hold that retention of estate property after demand for turnover does violate the automatic stay."

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