{"id":1577,"date":"2014-08-08T23:24:48","date_gmt":"2014-08-08T23:24:48","guid":{"rendered":"https:\/\/sacramentobankruptcylawyer.us\/?p=1577"},"modified":"2014-08-08T23:27:42","modified_gmt":"2014-08-08T23:27:42","slug":"can-your-lender-repossess-your-car-in-chapter-7-bankruptcy","status":"publish","type":"post","link":"https:\/\/sacramentobankruptcylawyer.us\/stop-car-repossession-chapter-7","title":{"rendered":"Can Your Lender Repossess Your Car In Chapter 7 Bankruptcy?"},"content":{"rendered":"

Before 2005’s BAPCPA <\/a>debtors could bring themselves current on their car loan, file bankruptcy, continue payments, and keep their car, both\u00a0during\u00a0bankruptcy and after their discharge, so long as they didn’t miss a payment without reaffirming the debt or redeeming the property.<\/p>\n

But post-BAPCPA, can you file bankruptcy in California and keep your car without signing a reaffirmation agreement or redeeming the vehicle?<\/strong><\/p>\n

Don’t know what reaffirmation or redemption is in bankruptcy? <\/span><\/em>\u00a0Then you should definitely call a bankruptcy lawyer.<\/span><\/p>\n

What if you just make the attempt<\/span> to reaffirm the debt?<\/em><\/p>\n

The safest bet is to consult with a bankruptcy attorney if you have a car loan and are considering chapter 7 bankruptcy. \u00a0However, if you wan’t to file on your own you can puzzle through the following excerpts from the Bankruptcy Code:<\/p>\n

11 USC 362(h)<\/strong><\/p>\n

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<\/a>(1)<\/span>\u00a0In a case in which the debtor is an individual, the stay provided by subsection (a) is terminated with respect to personal property of the estate or of the debtor securing in whole or in part a claim, or subject to an unexpired lease, and such personal property shall no longer be property of the estate if the debtor fails within the applicable time set by section\u00a0521<\/a>\u00a0(a)(2)<\/a>\u2014<\/span><\/p>\n

<\/a>(A)<\/span>\u00a0to file timely any statement of intention required under section\u00a0521<\/a>\u00a0(a)(2)\u00a0with respect to such personal property or to indicate in such statement that the debtor will either surrender such personal property or retain it and, if retaining such personal property, either redeem such personal property pursuant to section\u00a0722<\/a>, enter into an agreement of the kind specified in section\u00a0524<\/a>\u00a0(c)<\/a>\u00a0applicable to the debt secured by such personal property, or assume such unexpired lease pursuant to section\u00a0365<\/a>\u00a0(p)<\/a>if the trustee does not do so, as applicable; and<\/span><\/div>\n
<\/a>(B)<\/span>\u00a0to take timely the action specified in such statement, as it may be amended before expiration of the period for taking action, unless such statement specifies the debtor\u2019s intention to reaffirm such debt on the original contract terms and the creditor refuses to agree to the reaffirmation on such terms.<\/span><\/div>\n
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11 USC 521(a)(6)<\/strong><\/div>\n
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The debtor shall…\u00a0in a case under chapter\u00a07<\/a>\u00a0of this title in which the debtor is an individual, not retain possession of personal property as to which a creditor has an allowed claim for the purchase price secured in whole or in part by an interest in such personal property unless the debtor, not later than 45 days after the first meeting of creditors under section\u00a0341<\/a>\u00a0(a)<\/a>, either\u2014<\/span><\/div>\n
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<\/a>(A)<\/span>\u00a0enters into an agreement with the creditor pursuant to section\u00a0524<\/a>\u00a0(c)<\/a>\u00a0with respect to the claim secured by such property; or<\/span><\/div>\n
<\/a>(B)<\/span>\u00a0redeems such property from the security interest pursuant to section\u00a0722<\/a><\/span><\/div>\n
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11 USC 521(d)<\/strong><\/div>\n
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(d)<\/span>\u00a0If the debtor fails timely to take the action specified in subsection (a)(6) of this section, or in paragraphs (1) and (2) of section\u00a0362<\/a>\u00a0(h)<\/a>, with respect to property which a lessor or bailor owns and has leased, rented, or bailed to the debtor or as to which a creditor holds a security interest not otherwise voidable under section\u00a0522<\/a>\u00a0(f)<\/a>,\u00a0544<\/a>,\u00a0545<\/a>,\u00a0547<\/a>,\u00a0548<\/a>, or549<\/a>, nothing in this title shall prevent or limit the operation of a provision in the underlying lease or agreement that has the effect of placing the debtor in default under such lease or agreement by reason of the occurrence, pendency, or existence of a proceeding under this title or the insolvency of the debtor. Nothing in this subsection shall be deemed to justify limiting such a provision in any other circumstance.<\/span><\/div>\n
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What Does It All \u00a0Mean?<\/strong><\/div>\n
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Not sure how to reconcile these statutes? \u00a0Can your car lender repossesses your vehicle in bankruptcy even through you’re current on payments? \u00a0In re Dumont<\/a> says they can if you don’t timely enter into a reaffirmation agreement or redeem the vehicle, assuming\u00a0an ipso facto clause exists in contract. \u00a0However, what if you stated that you would reaffirm the debt, performed your intention by signing a reaffirmation agreement, but the agreement itself was disapproved by the court? \u00a0In that case you might<\/em> be able to keep your car…<\/div>\n
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Save yourself the hassle and possibly the loss of your car by calling California bankruptcy attorney Adam Garcia<\/a> for a free consultation.<\/strong><\/em><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Before 2005’s BAPCPA debtors could bring themselves current on their car loan, file bankruptcy, continue payments, and keep their car, both\u00a0during\u00a0bankruptcy and after their discharge, so long as they didn’t miss a payment without reaffirming the debt or redeeming the property. But post-BAPCPA, can you file bankruptcy in California and keep your car without signing […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/posts\/1577"}],"collection":[{"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/comments?post=1577"}],"version-history":[{"count":0,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/posts\/1577\/revisions"}],"wp:attachment":[{"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/media?parent=1577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/categories?post=1577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/tags?post=1577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}