How Does Bankruptcy Affect Repossession?

Of all the questions TIADA receives through the Compliance Consultation Service, repossession issues make up a significant portion. 

In particular, lienholders want to know what they can do when a customer files for bankruptcy protection. The two most frequently asked questions are: 

1) I repossessed a vehicle, then the customer filed for bankruptcy the next day/week. Do I have to return the vehicle? 

The short answer is yes. There are certainly ways for a lien holder to preserve their interest in, and the value of, the collateral. The association recommends that all lien holders make use of all legally available remedies to do so.

2)  My customer says that they are going to file for bankruptcy soon. Can I repossess the vehicle? 

Again, the short answer is yes. The automatic stay on collection efforts is not effective until a consumer records a bankruptcy filing. 

You can hear a much more detailed explanation of these questions from the comfort of your own computer by attending TIADA's virtual workshop Repossession and Bankruptcy Basics. The workshop runs from 11:00 a.m. to 12:00 p.m. Thursday, October 26, at 11:00 a.m. It is presented by TIADA General Counsel Michael W. Dunagan. Mike is an expert in repossession law and this workshop will cover the basics of those laws in Texas. Learn how repossession is treated under the Bankruptcy Code and how dealers can protect their investments without putting themselves at legal risk. REGISTER TODAY!



By: Antero
On: 10/20/2017 09:50:11
is there insurance available for overnite "loaner car"

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