Central District Consumer Bankruptcy Attorney's Association

Also see In re Wallace a Feb 2014 unpublished 9th Cir BAP opinion where the creditor demanded insurance as a condition of returning the vehicle and the court found unconditional return of estate property was required.
Peter M. Lively, J.D., M.B.A.
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400 * Toll Free: (800) 307-3328 * Fax: (310) 391-2462
On Tuesday, November 11, 2014 9:33 AM, "sam@southbaybk.com [cdcbaa]" wrote:
I've done two of these in the past few months and was able to get the vehicles returned without the Debtor having to pay storage (although I prepared the Debtor for that possibility). Also, once the vehicle is returned, Debtor can pay the lender through the plan, either in full or at fair market value - depending on the type, age and amount of the loan.

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Reply-To: Arsen
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I was asked recently whether a vehicle which had been repossessed 14 days prior to a bankruptcy filing would be returned to the Debtor if he files for chapter 13. I've never heard of this being done, but the Debtor said that selling the car at auction would be a violation of the automatic stay, and that the car must then be returned to the debtor. I used to think that once a car has been repossessed it's gone forever and there's no way for a debtor to get it back.

I was wondering if anyone on the list has done this - viz. turnover of the repossessed car back to a chapter 13 debtor? Is selling the car at auction postpetition a violation of the Stay?

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