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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We have an In-house financing car company and sell vehicles

Resolved Question:

We have an In-house financing car company and sell vehicles and carry the loan. We just received a document that the customer filed chapter 7 bankruptcy. The hearing is next month. What can we do, if anything, to get our money or vehicle back. The customer was paid up until we received the letter and now is on our deliquency list. Thanks, Debi
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

you can file a motion for relief from stay at this time or you can wait until the 341 hearing next month and request the trustee abandon his interest in the property so that you may proceed with a repossession.

Here is why

The automatic stay of the bankruptcy court prohibits any action against the debtor outside of the bankruptcy court. Once a bankruptcy has been filed all collection action must cease.

Once a bankruptcy is filed, the automatic stay of the bankruptcy court is in effect Bankruptcy Code regarding the automatic stay. 362 (4)k provides for actual and punitive damages for the willful disregard of the automatic stay.
Customer: replied 7 years ago.
Do we file the stay with the court and when do we get an answer to that? If that isn't approved then we should go to the hearing or can you do both actions?
Expert:  Ellen replied 7 years ago.
I cannot represent you nor prepare the documents as per site rules.

You can do both the 341 hearing may occur prior to the relief from stay hearing
Ellen and 3 other Bankruptcy Law Specialists are ready to help you

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