The Bankruptcy Court for the District of Maryland recently proposed a new local rule in response to the U.S. Supreme Court decision that mere retention of bankruptcy estate property by a creditor post-petition does not amount to an exercise of control over estate property in violation of the automatic stay.
The Maryland court’s proposed local rule 7007-1, titled as “Motions to Expedite Turnover of Motor Vehicles,” creates an expedited process within an adversary proceeding for turnover of a motor vehicle.
By motion, the plaintiff may request expedited turnover of a motor vehicle if the plaintiff satisfies the following conditions:
Practice Point: If adopted as proposed, the local rule goes into effect on December 1, 2021. Non-debtors holding motor vehicles at the time of the petition should be prepared to negotiate with debtors regarding turnover of the motor vehicles.
Please contact Bryan M. Mull with any questions concerning this topic.
For additional articles in the November 2021 issue of the Maryland Legal Alert, click here.
Bryan M. Mull
410-576-4227 • email@example.com