My 341 Has Passed: Will My Car Get Repossessed?
By Karen Oakes, Southern Oregon Bankruptcy Attorney on Oct 11, 2007 in Bankruptcy Myths, Bankruptcy Practice and Procedure, Choosing Bankruptcy Attorney, Collection Issues, Consumer Protection, Role Of The Lawyer, Surrendering Property
I was surfing the net again in search of other bankruptcy information sites and ran across www.bk-forum.com. Some answers were good; others were not so on the mark. One poster asked the question posed above: their 341 date had come and gone and they wondered if their car was going to get repossessed. Well, the answer was “yes, the creditor can come get your car. Take your personal possessions out of it.” The correct answer is: It depends. You may have signed a reaffirmation agreement (which basically puts you back on the hook again financially for that car). In that case, if your payments are current, the creditor cannot repossess the car. 45 days after the meeting of creditors, if you have not reaffirmed, redeemed (buying the market value of the car from the creditor) or surrendered, then technically, the creditor can then (AFTER the 45 days) come get the car. If it is a national car lender, this is likely to happen. If this is a local car lender or a credit union, and you have continued to make the payments, then a repossession won’t probably happen. If you continue to make the payments for a longer period of time (say, four-five months have gone by) and THEN, the creditor tries to repossess the car, you may have a potential lawsuit in state court for the creditor’s action. By accepting payments, the creditor may have waived any breach in the contract between the two of you and may no longer repossess. This is a “gray” area of law and there hasn’t been a lot of litigation on this issue yet. Talk to your attorney or if you filed on your own, go see an attorney who is experienced in this area in your state for a more definite answer.
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