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Bankruptcy Doesn’t Require Return Of Repossessed Car

 

A creditor doesn’t immediately have to return a repossessed car of a debtor who declares bankruptcy, the Third Circuit said in a ruling that widens a fissure among federal appellate courts.

Such refusal by creditors doesn’t violate the automatic stay that protects debtors and their property when they file bankruptcy, said the Oct. 28 decision by the U.S. Court of Appeals for the Third Circuit.

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