Bloomberg Law
Oct. 28, 2019, 6:02 PM

Bankruptcy Doesn’t Require Return of Repo’d Car: Third Circuit

Daniel Gill
Daniel Gill

A creditor doesn’t immediately have to return a repossessed car of a debtor who declares bankruptcy, the Third Circuit said in a ruling that widens a fissure among federal appellate courts.

Such refusal by creditors doesn’t violate the automatic stay that protects debtors and their property when they file bankruptcy, said the Oct. 28 decision by the U.S. Court of Appeals for the Third Circuit.

Creditors’ handling of repossessed cars has been a contested issue, as finance companies and cities impound cars for unpaid loan payments and parking tickets from consumers who eventually declare personal bankruptcy. The U.S. Supreme Court ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.