McDowell Law PC Bankruptcy Case Issue Before Supreme Court In October 2020

| Oct 8, 2020 | Chapter 13 |

Daniel Reinganum, Esquire an attorney at McDowell Law, PC in Maple Shade New Jersey argued in bankruptcy court that when a debtor files for bankruptcy after their vehicle has been repossessed but before it has been resold, the creditor must return the vehicle without further order. Daniel filed a motion to require the return of a repossessed car which was successful. Sanctions were also sought because the car was not immediately returned and the motion had to be filed. The court concluded that sanctions were not warranted because the creditor did not have to automatically return the car when the bankruptcy was filed without court order. The case was appealed all the way to the Third Circuit Court of Appeals and the Third Circuit Affirmed the Bankruptcy Judge Decision. However, other Circuits have decided differently, including decisions that the car must immediately be returned even without a court Order. As a result, the matter will be heard by the Supreme Court of the United States under the lead case name Fulton v. City of Chicago.

 

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