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04
Feb
2020

Execution on Debtor’s Vehicle

Debtor pays repossession costs and Court orders collateral returned to debtor. 
 
In this case, a creditor seized the debtor’s vehicle pursuant to an execution on an outstanding judgment. Soon thereafter, debtor filed a Chapter 7 Bankruptcy before the seized vehicle could be sold under the execution. Debtor claimed most of the value of the vehicle as exempt under the Bankruptcy Code and sought a return of the vehicle.
 
The court held that debtor could, in this case, use multiple exemptions up to $5,350.
 
The value of the vehicle was $6,400. The court ruled that the debtor could obtain possession of the car, but he must pay the creditor $1,050, being the amount owed to creditor in excess of the allowable exemptions.
 
If the debtor did not, however, repay said amount within 30 days, the creditor would again be allowed to take possession of the vehicle.
 
The court also ordered that the debtor pay the pre-petition repossession and storage fees since the creditor had not caused any delay and had incurred those costs prior to bankruptcy. In re Rivet, 125 B.R. 704.
 
By Charles R. Harroun, Attorney at Law

 



This entry was posted on Tuesday, February 4th, 2020 at 4:34 am and is filed under Bankruptcy, 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.

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