City of Chicago v. Fulton And the Turnover Conundrum

By Kara K. Gendron, Esquire, Mott & Gendron Law (Harrisburg, PA)

The recent Supreme Court decision in City of Chicago v. Fulton1 will change the law in most Circuits. Prior to this case, there was a split among the circuits as to whether the post-petition retention of property taken pre-petition constitutes a violation of the automatic stay under §362(a)(3) of the Code, which prohibits “any act . . . to exercise control over property.” The majority view, which included the Second, Seventh, Eighth, Ninth, and Eleventh Circuits, held that such actions . . .

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