Also known as: turnovers · revenue · sales volume
Written by attorneys · grounded in primary & secondary sources — see below
A duty of a party in possession of a debtor's property to deliver that property to the bankruptcy estate upon the filing of a petition, unless the property is of inconsequential value to the estate.
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Thunderbolt Motors held repossessed vehicles when Trailblazer Airlines filed bankruptcy. The automatic stay halted further disposition. Thunderbolt Motors turned the vehicles over to the estate trustee as required.
Terra Financial possessed equipment after a default judgment against Tonya Takahashi. When she filed for bankruptcy the stay took effect. Terra Financial turned the equipment over to the estate despite labeling the seizure a penalty.
Thomas Thompson held trust assets subject to an ascertainable standard when the beneficiary filed bankruptcy. The stay prevented further distributions. Thomas Thompson turned the assets over to the estate trustee.
Taliah Tang possessed imported goods subject to a duty limit when the importer filed bankruptcy. The stay blocked further enforcement. Taliah Tang turned the goods over to the estate.
Torchlight Media held repossessed broadcast equipment when Thaddeus Tran filed bankruptcy. The stay prevented sale. Torchlight Media turned the equipment over to the estate.
Tristan Thompson held a tenancy by the entirety interest when the debtor spouse filed bankruptcy. The stay blocked further action. Tristan Thompson turned the interest over to the estate.
A secured party already in possession must turn over the debtor's property to the estate upon filing unless the property has inconsequential value. The automatic stay prevents further enforcement actions.
Supporting sources
…the property of a debtor who had absconded. In Phillips , the Court upheld a statute that allowed the Commissioner of Internal Revenue to distrain the property of a taxpayer who had failed to pay his taxes. The statutes in those cases involved special circumstances that are not present in this case. The statutes in this…