Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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Since you have the vehicle already and he has not filed the chapter 13 the vehicle is yours, even id he files the bankruptcy he would have to pay your the payments owed as well as have you agree to reaffirm the vehicle which you do not have to. If he had filed it prior to you taking the vehicle that he could keep it by paying you the monthly payments.
Section 542(a) states that an entity in possession of property "that the trustee may use, sell, or lease . . . shall deliver to the trustee, and account for, such property . . . unless such property is of inconsequential value or benefit to the estate., meaning if their is no equity in the vehicle that belongs to him, the trustee will not demand it back as the property cannot be used to pay his creditors. Also, an attorney requesting the vehicle back should be in writing and I would not return the vehicle unless the court orders it, where you can show that you are contractually allowed to keep the vehicle.
Also Georgia law does not allow for a request to be made for the return of the vehicle, as long as you followed proper notice requirements you are fine.
If the bankruptcy court forces you to return the vehicle advise them of the contract and state to them you are using the vehcile for your personal use and the transfer took place as per GA law.
In cases where a secured party in possession may, after default, propose to retain the collateral in satisfaction of the obligation. Written notice of must be sent to debtor if debtor has not signed, after default, a statement renouncing or modifying rights. In the case of consumer goods no other notice need be given, but additional notice to certain holders of subordinate liens. If secured party receives objection in writing from a person entitled to receive notice within 21 days after notice was sent, secured party must sell collateral under Code Section 11-9-504. If no such written objection is received, secured party may retain collateral in satisfaction of the debt. See Georgia Code Section 11-9-505
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