Posts Tagged must

Repossessed Vehicles Must Be Returned to Debtor upon Filing Chapter 13

By: Michael Vanunu
St. John’s Law Student
American Bankruptcy Institute Law Review Staff
 
It is not uncommon for a chapter 13 debtor to file for bankruptcy after certain assets have already been repossessed.  This leaves the courts in the position of having to decide whether a particular creditor can continue to hold the asset it has repossessed, or must return it to the bankruptcy estate. Recently, in a case of first impression for the circuit, the Seventh Circuit, in Thompson v. General Motors Acceptance Corp.,[1] was called upon to determine whether an asset lawfully seized pre-petition must be returned to the estate after debtor files for chapter 13 bankruptcy, and if so, whether the asset must be returned even without a showing by the debtor that he can adequately protect the creditor’s interest.[2] In the case, Thompson had his car repossessed by General Motors Acceptance Corp (“GMAC”), a secured creditor.  A few days later Thompson filed for chapter 13, and sought the return of his vehicle from GMAC through the automatic stay provision of § 362(a)(3), which provides that “a petition filed [for bankruptcy] . . . operates as a stay . . . of any act to obtain possession of property of the estate . . . or to exercise control over property of the estate.”[3] GMAC refused because it claimed that Thompson could not adequately protect its interest.[4]
 

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Types of failure that you must learn

For the benefit of those who have no idea what this means, I would like to begin by defining exactly what it is. Bankruptcy is a legally declared inability of an individual or organization to pay its creditors and lenders in a given period of time. Creditors may make a claim against the bankruptcy of a debtor that is called failure, accidental, in a reconciliation k to recoup some of it because of them. Usually, however, many failures initiated by the debtor is called a voluntary bankruptcy, filed by the insolvent company or business. Bankruptcy also allow debtors a way out of a violent cycle of debt, should not be sloppy, and should be a last option. But in this particular article I will concentrate more on the two main types of bankruptcy is Chapter 7 and Chapter 13 bankruptcies. They are widely used for personal bankruptcy individually, to present a debtor of his property to a non-exempt konkursf

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Claims of creditors in the bankruptcy must be taken seriously

Proof of the claim:

Filing bankruptcy does not mean that the Court will listen only to the debtor. The judge will allow donors and their demands. These statements are called “proof of claims” Approval of the proof of claim: If you’re in the middle of the process of filing for bankruptcy, the presentation of creditor’s claims of evidence, the judge asked the defendant if the evidence who claims to oppose. Now, if the applicant is not responsible for the failure of this investigation, under the rules of the Court on personal bankruptcy, you itsest & # xE4; An-evident that the failure of the applicant has nothing against ‘evidence väittä & # xE4;. This means that it would accept the evidence of claims and the applicant must, if possible, what is owed to the creditor or the creditor during the bankruptcy process. Priority affect this failure. This is also to have a major impact on protected and non-dischargeable debt. Approval of the consequences of Claims Proof: Suppose that during the bankruptcy process, applications support a child. This argument can greatly increase the amount you need. Now, if you do not dispute the fact that during the bankruptcy, you do not get a second chance to oppose. Since we do not have any objection to be allowed to you and you have to pay this, if possible, during the bankruptcy. This situation could be repeated with respect to taxes, student loans and other secured loans. It could therefore be required to service after the filing of bankruptcy. Challenged the statements of evidence: At the end of these problems must be examined in detail the arguments of creditors in bankruptcy. If you find errors, you should immediately take the subject of bankruptcy court. You should take the failure of a lawyer or a bankruptcy attorney to describe it.

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