Supreme Court Ends Debate Over Bankruptcy Question
October of 2019, the Court of Appeals for the Third Circuit issued a decision addressing an often-asked question in bankruptcy: whether it is a violation of the automatic stay to retain a vehicle that was repossessed pre-bankruptcy?
Court of Appeals Answers FAQ Concerning Auto Repossession and Bankruptcy
A familiar circumstance in consumer bankruptcies is that a borrower becomes delinquent on an automobile loan and fails to address the situation – until the automobile is repossessed. The consumer then seeks bankruptcy representation, and then seeks (usually through counsel) the return of the vehicle.