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What can I do if I am facing repossession?

We know that everyone faces tough times at one point or another.  Whether you have lost your job, are unemployed, underemployed, or are simply just financially over extended—we get it, things happen.  One missed payment can quickly snowball into a situation you can’t seem to dig yourself out of and you may find yourself facing repossession of a vehicle.  We also understand that without a vehicle you won’t be able to get to work or any of your other obligations.  Of course, if you are facing a possible repossession, you should call us today and set up your appointment to see if we can stop the repossession from happening.  However, we understand that sometimes the repossession comes earlier than anticipated or you just haven’t made it in yet. 

Good news—We may still be able to get your car back.  This is very time sensitive so please contact us immediately.  Bad news—you may have to pay some fees to get your car back.  This is an area of the law that debtors’ attorneys have been contesting for years.  The bankruptcy code, per our reading and interpretation, doesn’t allow for a creditor to collect pre-petition fees from a debtor.  There is even case law that states that when an individual files for bankruptcy it is illegal for a creditor to "exercise control over the property of the estate".  Now, the only logical way to interpret this decision is to interpret is as applying to pre-petition seizures because a post-petition seizure would be an even clearer violation of the automatic stay.   There have been cases litigated that we stuck down because they did not comply with the bankruptcy code and the case law we previously discussed. 

All of that being said, the Eastern District of Missouri has had a standing rule in place for a number of years that effectively allows the car creditor to require fees to be paid up front, and outside of the bankruptcy plan, to have the vehicle returned to the debtor.  The fees often include storage fees and repossession fees.  The car creditors also generally require proof of insurance, using the reasoning that they need to ensure that their asset is protected.

The long and short of this is basically that while the legality of the practice seems a bit shaky, most of our clients are willing to pay the fees to ensure the prompt return of their vehicle.  The recourse if the fees are not paid would be substantial litigation.  Further, there are creditors that will agree that these fees can be addressed through the bankruptcy plan. 

If you have questions about this, or any other bankruptcy questions, please contact your St. Louis Bankruptcy Attorney today!

We know that everyone faces tough times at one point or another.  Whether you have lost your job, are unemployed, underemployed, or are simply just financially over extended—we get it, things happen.  One missed payment can quickly snowball into a situation you can’t seem to dig yourself out of and you may find yourself facing repossession of a vehicle.  We also understand that without a vehicle you won’t be able to get to work or any of your other obligations.  Of course, if you are facing a possible repossession, you should call us today and set up your appointment to see if we can stop the repossession from happening.  However, we understand that sometimes the repossession comes earlier than anticipated or you just haven’t made it in yet. 

Good news—We may still be able to get your car back.  This is very time sensitive so please contact us immediately.  Bad news—you may have to pay some fees to get your car back.  This is an area of the law that debtors’ attorneys have been contesting for years.  The bankruptcy code, per our reading and interpretation, doesn’t allow for a creditor to collect pre-petition fees from a debtor.  There is even case law that states that when an individual files for bankruptcy it is illegal for a creditor to "exercise control over the property of the estate".  Now, the only logical way to interpret this decision is to interpret is as applying to pre-petition seizures because a post-petition seizure would be an even clearer violation of the automatic stay.   There have been cases litigated that we stuck down because they did not comply with the bankruptcy code and the case law we previously discussed. 

All of that being said, the Eastern District of Missouri has had a standing rule in place for a number of years that effectively allows the car creditor to require fees to be paid up front, and outside of the bankruptcy plan, to have the vehicle returned to the debtor.  The fees often include storage fees and repossession fees.  The car creditors also generally require proof of insurance, using the reasoning that they need to ensure that their asset is protected.

The long and short of this is basically that while the legality of the practice seems a bit shaky, most of our clients are willing to pay the fees to ensure the prompt return of their vehicle.  The recourse if the fees are not paid would be substantial litigation.  Further, there are creditors that will agree that these fees can be addressed through the bankruptcy plan. 

If you have questions about this, or any other bankruptcy questions, please contact your St. Louis Bankruptcy Attorney today!


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