BANKRUPTCY LAW: Bank Accounts & the Automatic Stay

BANKRUPTCY LAW: In reversal of Bankruptcy Appellate Panel, 9th Circuit holds that exempt bank funds re-vested in Debtors after expiration of objection period. As such, funds were no longer “property of the estate,” and Bank could  place administrative hold on the funds, without
violating automatic stay (In re Mwangi, 8/26/14, Ninth Circuit)

11 USC Sec. 362 prevents actions against the debtor which would have the effect of depleting the monies available for creditors (“the bankruptcy estate”). After the bankruptcy is filed however, certain property reverts back to the debtor, and is no longer “property of the [bankruptcy] estate.”

Such is the case with interests in bank accounts which are declared exempt, and revert back to the debtor’s possession, after the expiration of the time for creditors to object to exempt claims. Therefore, the bank accounts involved here were no longer “property of the estate,” and could be the subject of a separate debtor-creditor process, i.e., the Bank’s “administrative hold.” This action did not violate the automatic stay provision of 11 USC Sec, 362.

http://cdn.ca9.uscourts.gov/datastore/opinions/2014/08/26/12-16087.pdf

DEBT OF GRATITUDE:

Real Madrid Transfers DiMaria for $100MM, and gets “El Chichariot” on loan in return; 

Former Manchester United Coach Sir Alex Ferguson has backed Javier “Chicharito” Hernandez to be a success at Real Madrid.

DEBT OF GRATITUDE:

Real Madrid Transfers DiMaria for $100MM, and gets “El Chichariot” on loan in return;

Former Manchester United Coach Sir Alex Ferguson has backed Javier “Chicharito” Hernandez to be a success at Real Madrid.