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Repo during ch7


Repo during ch7

I filed ch7 on March 31 and I was about 40 days past due on my car.. I owe about 30k on a car that books for about 14k and I'm surrendering it. So we offered fair market value to the lender and they rejected it. The lender is first tech federal credit union and my attorney says they are aggressive. So about 4 days ago I received a certified letter saying they are gong to repo the car so I call my attorney and just tell him I received this letter and he says well they can repo the car even before my meeting of creditors and without permission from the court.. I know I'm surrendering it but I just thought I would do that after discharge or with them appealing.. the hard part is I work out of town a lot and we only have 1 car. I just don't want my wife to come out of the grocery store with my kids to no car..i just didn't think they could just take it without the courts saying ok.. then my attorney gives me the credit unions rep phone number and says give them a call..**bleep** I'm paying you to do this
Message 1 of 8
Frequent Contributor

Re: Repo during ch7

I don't know what you expected to happen.

Message 2 of 8

Re: Repo during ch7

I didn't expect that.. everything I've seen and read says they can't do it unless they get permission from the court or after it discharges..
Message 3 of 8
Regular Contributor

Re: Repo during ch7

Assuming you are not a serial filer, here is the time line. . .


1.  The automatic stay relating to personal property remains in place as provided for under 11 USC 362.  Unless the lender gets a court order lifting the stay prior to the stay ending automatically, the following applies:


362(c) states that the stay against such property ends when the property is no longer property of the estate unless the provision of 362(h) applies.


Generally, property is no longer property of the estate once it is abandoned by the Trustee.  Abandonment happens either by Motion of the Trustee or upon closing of the case, whichever happens 1st.  It also happens if the lender files a Motion for Relief and the Motion is granted.  The entry of the Discharge is not relevant.


362(h) states that the stay against personal property ends if the debtor has not timely complied with the requirements of 11 USC 521(a)(2).


521(a)(2) requires the debtor to 1) file a statement of intention within 30 days after the case is filed and 2) perform under the statement of intention within 30 days after the First Meeting of Creditors (341 Meeting).


2. It is possible that by a local rule, if the Statement of Intention says "surrender", the automatic stay ends sooner than what the Bankruptcy Code provides.  You would need to ask your attorney about this.


So, assuming you are not a serial filer and assuming there is no local rule changing the timing, and further assuming that you timely filed your Statement of Intention, the soonest the stay will lift is 30 days after your 341 Meeting, unless the lender files a Motion for Relief and gets a Court Order before that date.


Hope I did not confuse you too much.




Message 4 of 8

Re: Repo during ch7

Thank you. I did receive a paper yesterday for the motion of relief thing and it's 2 weeks before my 341 meeting.
Message 5 of 8

Re: Repo during ch7

Actually, some lenders will repo while the stay is in effect.  In my case, the car, which I'd planned on reaffirming, just disapppeared.  They claimed the stay had been lifted, whichj was a lie.  What really happened was I satrted with a Chap 13, then changed to Chap 7.  They put the date of the Chap 13 creditors meeting in their system, ignored the notice of change to Chap 7, and their computer "assumed" that after 45 (I think it was) days after the meeting happened the stay was automatically lifted.  Which it would have been, if it had stayed a Chap 13.  Soi their computer said the stay was lifted when it never was and automastivcally issued a repo order.  But it had been converted to a 7 less than 30 days after original filing.  I told them they'd violated the stay, told them I was going to reaffirm, and theyinsisted the stay was lifted and  said the only way they'd release it was if I paid the enbtire loan plus thev repo fees.  And it tuirned out there was nothing I could do, no way to get them nailed for vo.iolating the stay, which definitely had NOT ever been lifted.  The jerks ended up with a car that had about $9K owed, and on which they MIGHT ever recover $1200 after repo and auction costs.  Sometimes A-hpoles create their own punishment.

Message 6 of 8
Established Member

Re: Repo during ch7

I was under the impression from my attorney they can't repo until the file a relief from automatic stay. He said it takes between 30-60 days but would happen before discharge. I just hope they send me a letter stating their intention so I have a few days to get another car lined up.
Message 7 of 8

Re: Repo during ch7

I'm not 100% sure but if you're surrendering I think you have to do it within 30 days after your 341.. but my credit union a actually filed the motion for relief and they have a court date 2 weeks before my 341 meeting. I've looked at renting so I can't get past the discharge but that's 900- you name it a month. I don't really know where to look before it discharges as far as a loan goes so I guess we'll see what happens 😕
Message 8 of 8