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Court Approval of Redemption financing in Chapter 7?
I'll shoot you a motion I did a few weeks ago when I get to the office in the
morning.
Kenneth Jay Schwartz, Esq.
LAW OFFICE OF KENNETH JAY SCHWARTZ
21031 Ventura Boulevard, Suite 640
Woodland Hills, California 91364-2226
Telephone: (818) 226-1205
Facsimile : (818) 226-1213
THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE PERSONAL AND
CONFIDENTIAL USE OF THE DESIGNATED RECIPIENT(S) NAMED ABOVE. THIS MESSAGE MAY
BE AN ATTORNEY-CLIENT COMMUNICATION, AND, AS SUCH, IS PRIVILEGED AND
CONFIDENTIAL. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR AN
AGENT RESPONSIBLE FOR DELIVERING IT TO THE DESIGNATED RECIPIENT, YOU ARE HEREBY
NOTIFIED THAT YOU HAVE RECEIVED THIS E-MAIL IN ERROR, AND THAT ANY REVIEW,DISSEMINATION, DISTRIBUTION OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED.
IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY.
THANK YOU.
________________________________
To: cdcbaa@yahoogroups.com
Sent: Thu, December 15, 2011 11:15:35 PM
Subject: [cdcbaa] Court Approval of Redemption financing in Chapter 7?
Somehow in 16 years of practice I have never been required to prepare a
redemption motion that was not a stipulation with the lender or that required
redemption financing. So I have diligently researched our Chief Judge's rulings
on how he determines valuation and obtained sample motions that he has approved
and learned that he literally requires the car to be claimed as exempt in
Schedule C even though it may be significantly underwater.
The debtor is using 722 redemption (US Bank), which provided approval for my
client to borrow funds. The sample motions I am reviewing ask for approval of
the financing from US Bank. Why is it necessary for a Chapter 7 debtor toobtain approval to borrow money postpetition in order to redeem a car? I am
staring at the code, FRBP, local rules and I've looked in practice guides. I do
not see the topic discussed. Perhaps I have just been looking at this too long
today, but have I missed something here?
I can serve it as a scream or die motion for the redemption, but cannot under
the local rules if also seeking approval of financing. I would rather address
this in the shorter time frame of a scream or die motion.
Mark Jessee
I'll shoot you a motion I did a few weeks ago when I get to the office in the morning. Kenneth Jay Schwartz, Esq.LAW OFFICE OF KENNETH JAY SCHWARTZ21031 Ventura Boulevard, Suite 640Woodland Hills, California 91364-2226Telephone: (818) 226-1205Facsimile : (818) 226-1213THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE PERSONAL AND CONFIDENTIAL USE OF THE DESIGNATED RECIPIENT(S) NAMED ABOVE. THIS MESSAGE MAY BE AN ATTORNEY-CLIENT COMMUNICATION, AND, AS SUCH, IS PRIVILEGED AND CONFIDENTIAL. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR AN AGENT RESPONSIBLE FOR DELIVERING IT TO THE DESIGNATED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT YOU HAVE RECEIVED THIS E-MAIL IN ERROR, AND THAT ANY REVIEW,
DISSEMINATION, DISTRIBUTION OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY. THANK YOU.From: Mark Jessee <mjessee@jesseelaw.com>To: cdcbaa@yahoogroups.comSent: Thu, December 15, 2011 11:15:35 PM
The post was migrated from Yahoo.
Somehow in 16 years of practice I have never been required to prepare a redemption motion that was not a stipulation with the lender or that required redemption financing. So I have diligently researched our Chief Judge's rulings on how he determines valuation and obtained sample motions that he has approved and learned that he literally requires the car to be claimed as exempt in Schedule C even though it may be significantly underwater.
The debtor is using 722 redemption (US Bank), which provided approval for my client to borrow funds. The sample motions I am reviewing ask for approval of the financing from US Bank. Why is it necessary for a Chapter 7 debtor to obtain approval to borrow money postpetition in order to redeem a car? I am staring at the code, FRBP, local rules and I've looked in practice guides. I do not see the topic discussed. Perhaps I have just been looking at this too long today, but have I missed something here?
I can serve it as a scream or die motion for the redemption, but cannot under the local rules if also seeking approval of financing. I would rather address this in the shorter time frame of a scream or die motion.
Mark Jessee
The post was migrated from Yahoo.