SCOTUS TAKES Goldman Sachs Bankruptcy Fight!!
The Supreme Court just agreed to hear Goldman Sachs Bank USA v. Brown — the fight over whether a bank can force borrowers into arbitration after it kept collecting their credit card debt once they filed for bankruptcy. On Friday, 6 November 2026, the Court took the case. Rhea Brown and Kevin Maze say Goldman Sachs Bank USA, the bank behind the Marcus credit cards, kept collecting after they sought bankruptcy protection, when the automatic stay should have stopped all collection. Goldman points to the arbitration clause in the cardholder agreements. The bankruptcy judge said no. The district judge said no. In March 2026, a divided Fourth Circuit, 2-1, said no. Now the Supreme Court will decide — argument in 2027, a ruling expected by late June or early July 2027. This is a cert grant only: the Court has NOT ruled for either side.
Sources: Reuters, 6 November 2026 (Supreme Court to hear Goldman Sachs appeal in bankruptcy arbitration case); Bloomberg Law, 6 November 2026 (Supreme Court to hear Goldman Sachs bankruptcy arbitration bid); SCOTUSblog, 6 November 2026. Case: Goldman Sachs Bank USA v. Brown — cert granted 6 November 2026; question under 11 U.S.C. § 362(k) (damages for violating the bankruptcy automatic stay) and the Federal Arbitration Act; Fourth Circuit 2-1 (Richmond), March 2026, majority Circuit Judge Paul Niemeyer, dissent Circuit Judge Robert King; Second Circuit 2006 decision noted in the dissent; argument 2027, decision expected by late June / early July 2027. No ruling yet — cert grant only.
In this video: the Supreme Court's 6 November 2026 cert grant explained, who Rhea Brown and Kevin Maze are and the proposed class action over Marcus credit cards, the automatic stay and Section 362(k) damages, the Federal Arbitration Act clash, the bankruptcy judge and district judge refusals, the Fourth Circuit's 2-1 ruling and Judge Niemeyer's majority vs Judge King's dissent, the Second Circuit split from 2006, what happens before the 2027 argument, and what the ruling will mean for bankrupt borrowers.
Chapters:
0:00 SCOTUS takes the case
0:23 The debtors: Brown and Maze
1:46 The law: stay vs arbitration
3:22 Lower courts: the 2-1 split
4:38 What happens next: argument 2027
6:00 What it means for borrowers
#GoldmanSachs #SupremeCourt #Bankruptcy
Disclaimer: This video is commentary based on verified news and court reporting. Dramatic titles are commentary framing; court outcomes are reported from verified reporting.
