debtor Tag

17 Nov Bankruptcy Court, Debtor, Ball Three

In baseball, a well-known play is called the 'walk'. When the pitcher throws the ball outside the strike zone and the batter doesn't swing, it is called a 'ball'. Four 'balls' and the batter gets to walk to first base. Chrysler Credit has thrown its third ball in Bankruptcy Court in Connecticut this past week. They had sought permission to repossess a car from a debtor who was current in payments, but did not reaffirm the loan. Chrysler alleged that it needed an order so that their repo man would feel comfortable in repossessing the car.

Under the revisions to the Bankruptcy Code in 2005, creditors had hoped to require debtors to reaffirm car loans in every bankruptcy case. A reaffirmation would put debtors back into a pre-bankruptcy posture as if the bankruptcy had never been filed as to that loan. The revisions appeared to require a reaffirmation, or redemption (by paying the loan off) or surrender of the vehicle. Some jurisdictions recognized a so-called fourth option, commonly called "keep and pay".

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11 Aug Court Determines Undisclosed Fees are Improper

A mortgage company that improperly charged fees and costs in a Chapter 13 case without disclosing the practice to the Bankruptcy Court or to the Debtor will be forced to return all of the improperly applied money. The Bankruptcy Court for the Southern District of Texas discovered that Ameriquest Mortgage Company had been misapplying mortgage payments to fees that were not allowed in the Chapter 13 case and plan. As a result, the Debtor's mortgage was permitted to fall further and further behind so that the Ameriquest could attempt a foreclosure of the Debtor's residence.
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