A friend filed bankruptcy and surrendered her pickup truck to be repossessed. Is there a maximum time limit allowed for the bank/dealer to pick up the vehicle. In other words, if they leave it over a certain period of time and fail to pick it up, do they forfeit the truck to my friend?
2007-10-07 13:52:46 · 6 answers · asked by kal2448 1 in Business & Finance ➔ Personal Finance
The bankruptcy was discharged over 5 months ago - they notified the attorney they would surrender the vehicle almost a year ago. They also surrendered a travel trailer that was picked up within about 3 months. The attorney and bank both said that someone would be sent to pick up the vehicle. They are still driving and using the pick-up 1) because it's there and 2) to avoid spending money to fix up an old pickup if they don't have to yet. Can they get in trouble for using it if it hasn't been picked up yet?
2007-10-08 01:11:19 · update #1
The bank has first call on their collateral. If they don't come get it, it will just sit around and become a target for vandals. It will not become the debtors property if it has been surrendered.
2007-10-07 13:57:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Even if there were a limit on time to recover the car (there isn't) it would NOT apply during a bankruptcy. Bankruptcy AUTOMATICALLY stops ALL collection activity INCLUDING repossession. The bank would be violating FEDERAL law if the took the car during bankruptcy without an order from the bankruptcy court. If the court ordered the car surrendered, it would most likely require your friend to take it to a location specified by the bank.
2007-10-07 15:01:43 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
In many cases they require the bankrupcy to be discharged before they repo the car...that is what happend to my husband and I...we surrendered both vehicles and they waited until the bankrupcy was discharged before they came to get them...then they had to arrange to come and get them at a time when we were not home (I am not sure why, something about protecting the repo agent...I didn't really care, I just left the key under the seat of my car). It took about 3 months from the time we filed for them to come get the cars (this was in 2005 before the laws changed and it only took 1 month between the time the bankrupcy was filed and when the bankrupcy was discharged).
2007-10-07 14:41:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No. It's pretty unlikely that they won't come get the vehicle unless it really is a piece of junk.
Has her bankruptcy been discharged yet? The creditor has to wait till the court tells them it's okay to come get the vehicle. They might not get it till after the discharge.
2007-10-07 13:59:15 · answer #4 · answered by bdancer222 7 · 0⤊ 0⤋
No, they don't forfeit it. But if they delay in picking it up and it takes room in your garage, you may ask the bankruptcy court to provide to compensate you for storage fees after a reasonable delay.
2007-10-07 13:57:53 · answer #5 · answered by Anonymous · 0⤊ 1⤋
NO, it's still their vehicle. If you move or even touch the vehicle it's the same as auto vandalism or auto theft
2007-10-07 14:01:28 · answer #6 · answered by Jan Luv 7 · 0⤊ 1⤋