Turnover Amicus Brief

Posted by NCBRC - September 11, 2012

NACBA has filed an amicus brief on the issue of whether a creditor must return collateral that was repossessed prior to bankruptcy once the creditor learns of the bankruptcy filing. Weber v. SEFCU, No. 12-1632 (2d Cir.). NACBA argues that section 542(a) imposes an affirmative duty on a creditor in possession of collateral to turn it over to the bankruptcy estate and that failure to do so is an unlawful “exercise of control over the property” and a violation of the automatic stay under section 362(a) meriting sanctions.

Thanks to Ray DiGuiseppe for writing NACBA’s brief.

Weber NACBA amicus


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