non-bankrputcy workout Tag

06 Apr Repo Alert: Are You at Risk?

Last year, a potential client called me to say that her car had been repossessed and that she needed help. I explained that one option would be to file a Chapter 13, then a Complaint for Turnover as a means to get the vehicle back. We would argue to the bankruptcy judge that my client’s vehicle was necessary for her to fulfill the terms of her plan, and thus the judge should order the lender to “turn over” the vehicle immediately. In this case, however, I felt that Chapter 13 might be premature. Instead, I called the lender’s customer service number and after being transferred from department to department, I finally spoke to someone in the default department. I explained that I was a bankruptcy lawyer who was prepared to file Chapter 13 on behalf of my client and I suggested that everyone might be better off if the bank returned the vehicle voluntarily in exchange for my client’s payment of all missed payments + finance charges.
Read More