Repossession while in CH7

[Anonymous]

So The wife and i are including 2 of our cars in the chapter 7 BK we filed.  We are voulentarily surrendering the vehicles.  Recently the bank contacted us and wanted to pick the vehilces up.  We have surrendered one already, but I am wondering if we have to surrender them, or if its just voulentary? 

i dont mind getting rid of the cars because its costing me a good bit to insure the insurance, and I dont want to be without state minimum... 

i thought BK  protected you from all collection actions until after discharge? and isnt reposession a form of collection?

Just Curious.

[TXinandout]

If you said you in your petition you were going to surrender, and you are not up to date with your payments, then yes, they can come pick it up.

[ezdriver]

Surrent the other car and move on with your life.

[Anonymous]

Technically if you're not discharged yet, then there is the BK stay and they can't do any colelction activity during this (calls, letters etc which if htey are going to call it needs to be directed to your attorney). They can ask the court to pick up the unit, but that generally takes as long as it would if they waited till the Bk was discharged. That's if you're doing chapter 7. I'm not familiar with CH13.

[despritfreya]

This is to correct the apparent misunderstanding as to when the protection of the automatic stay ends as it relates to a creditor secured by personal property. 

11 USC 362(h) states, in part, that, for individuals, the automatic stay "is terminated with respect to personal property. . .  securing. . . a claim. . . if the debtor fails within the applicable time set by section 521(a)(2). . . to file. . .  a statement of intention. . . and to take timely the action specified in such statement."

11 USC 521(a)(2), in part provides that an individual debtor who has secured debt must file a statement of intentions and "within 30 days after. . . (the 341 meeting) . . . perform his intentions".

Bottom line. . . Lienholder must obtain a separate court Order lifting the stay up to 30 days after the first scheduled 341.  On the 31st day, if the debtor has not fulfilled his/her obligation as referenced in the Statement of Intention, the stay ends by operation of law and the lienholder has the right to repo.  As of that 31st day the lienholder needs nothing from the court and does not have to wait unti the entry of a discharge (although many do).

Des.

[Scupra]

Thank you Des!

[Anonymous]

I have been cooperative with the bank, only made 1 request to keep the car an extra few days (wife needed to head out of town for a funeral, and I wanted her in the SUV)... they said "no problem, call when she returns and we will arrange pickup"

Going to look forward to cancelling the insurance on these as they are pricey bastards to insure!

Thanks for the responses guys

[Vegas4Play]

Glad it worked out for you.