Vehicle Repossessions


P

ProfessorDave

Have you seen any repossessions of up-side-down vehicles were the debtor is
current and has not executed a reaffirmation agreement? Especially in
California?
 
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P

ProfessorDave

Ford Motor Credit and DaimlerChrysler Credit will repossess vehicles
that were not reaffirmed, even if current. I am currently challenging
this practice in Maryland.

Brett Weiss
Joseph, Greenwald & Laake, PA
W: www.BankruptcyLawMaryland.com
B: www.BankruptcyLawNetwork.com/author/bweiss

Have you seen any repossessions of up-side-down vehicles were the debtor
is
current and has not executed a reaffirmation agreement? Especially in
California?
Thanks, Brett.

I've been practicing less, and hadn't seen it happen. But yesterday I had
an attorney for FMCC expressly tell me that they were going to repossess a
vehicle with a 26k claim and fmv of 13k. And in their demand they wrote
that if I didn't sign the reaf they wouldn't file it. I was ... speechless.

Debtor reminded me today that her mother was a co-signer. So, I don't see
how they can do this. But I kind-of hope they try.

Are you challenging this in state court under the laws of Maryland? Even
so, I'd love to hear how it turns out. Maryland is lucky to have you.
 
C

candide

Brett Weiss said:
Ford Motor Credit and DaimlerChrysler Credit will repossess vehicles
that were not reaffirmed, even if current. I am currently challenging
this practice in Maryland.
..........................
As I read the Code, the lifting of the stay simply means that the
lender may exercise its state-court rights. In Maryland, I don't
believe that they can repossess on a car where payments are current
and the vehicle is properly titled and insured.
Assuming that you are correct about what Md. law does and does not
provide and also that the underlying vehicle purchase and finance
contracts contain whatever are the recently most generally prevailing
terms in such agreements:

For persons who may have reasons not to opt for a bankruptcy filing
and also do not care about regaining a vehicle repossessed despite
proper titling and insurance and current installment payments, would
such a repossesion constitute a repudiation as a matter of Md. state
law such that the not bankrupcty petitioning puchaser would no longer
be liable for theotherwise payable remaining balance on the
installment contracts?
 
A

Adam Smith

What is "a reaffirmation agreement", haven't run into it yet but
probably will.

Thanks
 
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M

Mark T.B. Carroll

Adam Smith said:
What is "a reaffirmation agreement", haven't run into it yet but
probably will.
It's where you tell the bankruptcy judge that you don't want a
particular debt discharged in bankruptcy (you'll keep on paying it
instead or whatever). I don't know if it needs the creditor's agreement
but it'd probably be worth a quid pro quo of some kind. The judge might
ask things to make sure you realize what you're doing and you weren't
improperly pressured.

Mark
 

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