Let me make sure I have the facts correct.
Debtor purchased a used car from you, then filed a Chapter 13 Bankruptcy.
His Chapter 13 Plan says direct pay.
Is he behind on his payments?
yes to both
Most bankruptcy courts will not allow a debtor to pay direct if they are behind on the payments.
So you have a couple of options.
You most likely would want to file a Motion for Relief from the Automatic Stay (or in the Alternative, for Adequate Protection).
how-who does that
You will likely need an attorney to do this, as it requires you to appear in court in front of the bankruptcy judge.
could you do paperwork and i go before judge or do i need to hire a local attorney and pay him to go to court
please give me one sec...
take your time
you would need to hire a local attorney...
however, i can help you understand the process a little better
Basically, you cannot repo the car or take any action against the borrower outside of the bankruptcy forum at the present time.
This is due to the automatic stay that went into effect when he filed.
So you need to file a motion that will either 1) force debtor to make his payments or 2) allow you to repo the car.
That's the Motion for Relief from the Automatic Stay or for Adequate Protection I mentioned previously.
If you obtain relief from stay, you could repo the car as soon as the order permits you to do so (usually 14 or 30 days). Keep in mind you need to file the motion and then have it granted at a hearing, so this will probably take about 2 months.
The more likely scenario is that you would be granted adequate protection (especially if the debtor contests relief from stay and wants to keep the car). This means that the court would order the debtor to make his regular monthly payments. If he failed to do so, you could file a notice with the court and then repo the car.
Sounds like spend good money after bad - i appreciate all your help, how do i get you in future if have more questions.
As you can probably tell, there are a lot of procedural nuances here, which is why you need an attorney. If you try to do this by yourself and don't do it correctly, the court could sanction you.
what if i do nothing and just let time go by, will i eventually be able to repo
You can put "For Fritz" before your question in the subject line.
Where are you in Florida?
"what if i do nothing and just let time go by, will i eventually be able to repo"
That's actually a VERY good question.
Fort Pierce 34946
Okay, so you would definitely want to file a Motion for Relief from Stay or for Adequate Protection.
In Southern District, you could repo the car as soon as the Plan is confirmed and he's still behind on payments, but note that you CANNOT do that.
You would need to file a Motion for Relief even after confirmation of the Debtor's Plan.
Do you have any other questions for me?
No, you did a great job and i appreciate!
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