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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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If I have property seized by the sheriff just prior to filing

Customer Question

If I have property seized by the sheriff just prior to filing bankruptcy, can I get that property back?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 3 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

This is a common question,

WALLSTREETESQ :

how much time went by?

JACUSTOMER-ib8mz9vu- :

Two weeks.

WALLSTREETESQ :

what was taken?

JACUSTOMER-ib8mz9vu- :

a car

JACUSTOMER-ib8mz9vu- :

not by the lender. If that helps.

JACUSTOMER-ib8mz9vu- :

i owned it outright.

WALLSTREETESQ :

Section 542 of the Bankruptcy Code requires that entities in possession of "property of the bankruptcy estate" are generally required to turn the property over to either the trustee (in Chapter 7) or the debtor (in Chapter 13). This big sticking point then for this turnover requirement is determining what is "property of the estate."

It will be difficult, if the car was taken and already sold at an auction, it is possible that the court would allow you to get the car back, if you make the owed payments to the car. The law is not too helpful, Section 541 of the Bankruptcy Code defines property of the estate. This definition includes "all legal or equitable interests of the debtor in possession as of the commencement of the case." Basically this definition states that whatever rights the debtor has at the commencement of the case continue in bankruptcy. As for the vehicle that has been repossessed, the court has to discover what rights a debtor had when the bankruptcy case was filed.

WALLSTREETESQ :

If you file a chapter 13, and put the arrears owed to the car in the plan your chances would be better,

WALLSTREETESQ :

What you need to do is contact the lender and see if they still have the car and how much is owed,

WALLSTREETESQ :

if you can pay the owed payments they may allow you to recover the vehicle,

WALLSTREETESQ :

A Chapter 7 is usually not your best bet if you want to get your car back from the lender. This is because Chapter 7 does not allow you to cure your loan arrears. Depending on your lender or your local bankruptcy court, you may be able to negotiate or force the return of your car but you will likely be required to pay all repossession costs and bring your loan account current in a short amount of time which is hard to do for most people.

Expert:  WALLSTREETESQ replied 3 years ago.
WALLSTREETESQ : Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.
WALLSTREETESQ : This is a common question,
WALLSTREETESQ : how much time went by?
JACUSTOMER-ib8mz9vu- : Two weeks.
WALLSTREETESQ : what was taken?
JACUSTOMER-ib8mz9vu- : a car
JACUSTOMER-ib8mz9vu- : not by the lender. If that helps.
JACUSTOMER-ib8mz9vu- : i owned it outright.
WALLSTREETESQ : Section 542 of the Bankruptcy Code requires that entities in possession of "property of the bankruptcy estate" are generally required to turn the property over to either the trustee (in Chapter 7) or the debtor (in Chapter 13). This big sticking point then for this turnover requirement is determining what is "property of the estate."

It will be difficult, if the car was taken and already sold at an auction, it is possible that the court would allow you to get the car back, if you make the owed payments to the car. The law is not too helpful, Section 541 of the Bankruptcy Code defines property of the estate. This definition includes "all legal or equitable interests of the debtor in possession as of the commencement of the case." Basically this definition states that whatever rights the debtor has at the commencement of the case continue in bankruptcy. As for the vehicle that has been repossessed, the court has to discover what rights a debtor had when the bankruptcy case was filed.
WALLSTREETESQ : If you file a chapter 13, and put the arrears owed to the car in the plan your chances would be better,
WALLSTREETESQ : What you need to do is contact the lender and see if they still have the car and how much is owed,
WALLSTREETESQ : if you can pay the owed payments they may allow you to recover the vehicle,
WALLSTREETESQ : A Chapter 7 is usually not your best bet if you want to get your car back from the lender. This is because Chapter 7 does not allow you to cure your loan arrears. Depending on your lender or your local bankruptcy court, you may be able to negotiate or force the return of your car but you will likely be required to pay all repossession costs and bring your loan account current in a short amount of time which is hard to do for most people.


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