Vehicle Repossessions

Discussion in 'Bankruptcy' started by ProfessorDave, Feb 4, 2009.

  1. 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?
     
    ProfessorDave, Feb 4, 2009
    #1
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  2. ProfessorDave

    Brett Weiss Guest

    Brett Weiss, Feb 5, 2009
    #2
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  3. 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

    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.
     
    ProfessorDave, Feb 5, 2009
    #3
  4. ProfessorDave

    Brett Weiss Guest

    Yes. 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.

    Brett Weiss
    Joseph, Greenwald & Laake, PA
    W: www.BankruptcyLawMaryland.com
    B: www.BankruptcyLawNetwork.com/author/bweiss
     
    Brett Weiss, Feb 9, 2009
    #4
  5. ProfessorDave

    candide Guest

    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?
     
    candide, Feb 9, 2009
    #5
  6. ProfessorDave

    Brett Weiss Guest

    Brett Weiss, Feb 12, 2009
    #6
  7. ProfessorDave

    Adam Smith Guest

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

    Thanks
     
    Adam Smith, Mar 14, 2009
    #7
  8. 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
     
    Mark T.B. Carroll, Mar 14, 2009
    #8
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