Legal Question in Bankruptcy in United States

If your a lean holder on a car and the person files chapter 13 can I get my car back or do I have to take what the courts say

Asked on 7/28/16, 5:01 pm

4 Answers from Attorneys

David Michael Benson Benson Law Firm

You can either: (1) file a motion to lift the automatic stay in order to repossess the car, but you have to have a basis for doing so; (2) object to confirmation of the Plan, but you have to have a basis for doing so; or (3) accept the payment stream you're getting and move on. If you choose (1) or (2), you might want to hire an attorney to assist you. Good luck!


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Answered on 7/28/16, 5:31 pm
Timothy Trichler Timothy R. Trichler - Attorney and Counselor at Law

Greetings; The answer provided by attorney Benson is entirely correct. I suspect from the way you asked your question, that the attorney for the debtor is trying to modify the terms of your note. And given the age of the loan and/or other factors, this may be allowed and ordered by the court. The defense to such a situation is complicated. You will need the assistance of an attorney that handles bankruptcy on a regular basis if you decide to object. Please do not attempt to object without a sound basis. Generally, you do not have the right to just 'get my car back'. Your chances of getting your car back are better if the debtor is behind on the payments. Best of luck!

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Answered on 7/28/16, 6:38 pm

The devil, my dear, will be in the details. If, for example, the debtor has owned the car for more than 910 days, you have to accept fair market value to pay off your lien on the vehicle. But you do not have to accept the debtors appraisal and may oppose this proposal to offer your own. Or if the payment on the vehicle is delinquent and the plan does not provide for full payment of the past due amounts, you may file a motion to lift the stay in order to be able to repossess the vehicle.

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Answered on 7/29/16, 8:49 am
Stephen Harkess Colorado Legal Solutions

If the plan provision does not pay you what the bankruptcy code provides, you can object to confirmation of the plan.

The bottom line is, if the plan is confirmed then you are bound by the terms of the plan. You cannot repossess the car unless you get the Court to grand you relief from the bankruptcy stay and this will not happen if the car is being paid in accordance with the Chapter 13 plan.

It would be a good idea to review the Chapter 13 plan with an attorney to determine whether you are getting what you are entitled to.

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Answered on 7/29/16, 2:23 pm

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