Upon filing Chapter 13 Bankruptcy, the court supervised repayment plan, an Automatic Stay is immediately imposed. ?The Automatic Stay prohibits creditors from further collection activity beyond the bankruptcy filing. ?
This means that all collection activity must immediately stop, including the auction sale of a repossessed vehicle.?
Once a vehicle is repossessed, the vehicle owner has a limited amount of time in which to redeem it. ?In most instances that redemption period is 21 days from the time of repossession, before the vehicle is sold at auction.
In most instances, the finance company will allow the repossessed vehicle to be ?redeemed? so long as the outstanding balance is satisfied. ?In some other instances, the finance company may require that the arrears plus a security payment equal to about 2 to 3 months of future payments be secured as well. ?
If the vehicle cannot be redeemed by satisfying the arrears, then a chapter 13 bankruptcy filing can address the outstanding balance in an extended payment plan. ??
Retrieving the Seized Vehicle
After filing the chapter 13 papers, a filing receipt is generated b the court. The filing receipt provides critical information for creditors about the bankruptcy filing. ?The filing receipt also contains language admonishing creditors of potential penalties for failing to observe the "Stay".
The filing receipt should be promptly forwarded to the finance company to alert them that the Automatic Stay is in place and of their obligation cease the vehicle liquidation.
Upon receiving the notice of the chapter 13 filing, the finance company must release the vehicle to its owner, provided the proper documents are produced, such as proof of insurance.?
The vehicle will likely be stored in a storage yard associated with the repossession agent that seized the vehicle. ?The finance company sill instruct the storage yard to release possession of the vehicle pursuant to the chapter 13 filing and court imposed Automatic Stay.?
Storage yard related fees should be anticipated and included into the chapter 13 plan for repayment over the 3 to 5 year payment period allowed by the plan.
Retrieving the vehicle after filing chapter 13 bankruptcy does not ensure that it cannot seized without condition. ?If the terms of the chapter 13 payment plan is breached, then the vehicle can once again be repossessed by the finance company.
Source: http://www.docstowork.com/Bankruptcy-Blog.html?entry=chapter-13-bankruptcy-retrieving-your
bcs rankings miguel cotto vs antonio margarito rockefeller center art basel 2011 art basel 2011 straight no chaser straight no chaser
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.