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Friday, January 15, 2021 Today, the Supreme Court resolved a circuit split regarding whether a creditor’s post-petition refusal to turnover bankruptcy estate property that it repossessed or impounded prepetition violates the automatic stay. The Supreme Court ruled in favor of the creditor and decided that it did not violate the automatic stay. The issue in In re Fulton, 926 F.3d 916 (7th Cir. 2019), involved Chicago’s refusal to return vehicles that had been legally impounded prior to the bankruptcy filings. Reversing several lower court decisions, the Supreme Court, in an 8-0 decision (Justice Barrett took no part in the consideration of the case), ruled that mere retention of property of a bankruptcy estate after the filing of a bankruptcy petition does not violate the automatic stay of 11 U.S.C. § 362. The Court pointed out that reading § 362 to include the “mere retention” of property would render § 542 of the Bankruptcy Code, requiri ....