Legal News for Credit Union Managers Since 1990
« Wrongful Transfer of Property
Credit Union Employee: Failure-to-Promote »
02
Jan
2024

Bankruptcy Redemption Requires Lump-Sum Payment

Bankrupt Debtor may only redeem collateral in one payment. Redemption installment payments prohibited if debtor elects to retain vehicle. 
 
 Here, debtor sought to redeem Ford Motor Credit collateral by paying installment payments for the value of the vehicle, instead of one lump-sum redemption payment.

Section 722 of the Bankruptcy Code provides, in pertinent part:

An individual debtor may, whether or not the debtor has waived the right to redeem under this section, redeem tangible personal property intended primarily for personal, family, or household use, from a lien securing a dischargeable consumer debt . . . by paying the holder of such lien the amount of the allowed secured claim of such holder that is secured by such lien.

Debtor sought to repay Ford Motor Credit by paying the value of the vehicle in installments to the creditor.

The court, however, held that debtor may only redeem the vehicle by paying one lump-sum payment to the creditor.  In re Diana Tucker, 158 B.R. 150.

Author: Charles R. Harroun, Attorney at Law



This entry was posted on Tuesday, January 2nd, 2024 at 5:22 pm and is filed under Bankruptcy, Mortgages, National, Secured Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Your comment

Powered by WP Hashcash

  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Credit Union Assessed Punitive Damages
    • Defective Notice to Sell Collateral Defeats Collection of Deficiency
    • Nondischargeable Debt: Disassembled Collateral
    • Credit Union Board-Member Suit Dismissed
    • Nondischargeable Gambling Debts
    • Credit Union Liable to Insurance Agent
    • Garnishment & Wage Assignment
    • Credit Union: Willful Violation of Automatic Stay
    • Chapter 7 Bankruptcy Dismissed for Substantial Abuse
    • Credit Union Premises Liability
    • College Graduate Age Discrimination Suit

  • Website Builder

2009-2020 Copyright Harroun, P.C. | Credit Union Legal Newsletter powered by WordPress and Uchilla
Subscribe: Entries (RSS) and Comments (RSS)