Connecticut defeats attempt to clarify vehicle defaults
By Eugene S. Melchionne, Connecticut Bankruptcy Attorney on Jun 7, 2007 in Chapter 7 Bankruptcy, Connecticut, General Bankruptcy Information, Protecting Assets In Bankruptcy, State Specific Bankruptcy Issues
This past week, the Connecticut legislature worked on a bill which would have clarified that merely filing a Chapter 7 Bankruptcy is not a default in the terms of a car loan contract. Current Connecticut law is not settled on the topic and this bill would have set the terms of default in such a situation as non-payment. Debtor and Creditor lawyers disagree on the issue and the Bankruptcy Courts in Connecticut have not yet decided the effect of the 2005 revisions to the Bankruptcy Code on car loans.
After passing the House of Representatives by unanimous vote, the state Senate defeated the measure on a party line with Senate Democrats voting against that part of the bill.
A substitute measure was quickly drafted and passed the House again with a unanimous vote. Democratic Senate Leader Andrew McDonald refused to let the matter be taken up for a vote by the Senate and the measure died with the end of the legislative session in Connecticut for 2007.
If you liked that post, then try these...
The "Drive More People Into Bankruptcy Act of 2005"? by Karen Oakes, Southern Oregon Bankruptcy Attorney
Bankruptcy Basics: What Is A Reaffirmation Agreement? by Karen Oakes, Southern Oregon Bankruptcy Attorney
Bankruptcy, Mortgages, and Miracles by L. Jed Berliner, Springfield Bankruptcy Attorney
You must be logged in to post a comment.