Vehicle repo and chapter 13

[DCrews1981]

my vehicle was repoed 4/24 and thw attorney wants to file on 5/2 I know I can ask for the car back but they took it over 200 miles away and have added $35 per day storage as well as a repo admin fee. How would someone who filed chapter 13 pay for that? Anyone. It have to pay the fees/storage and got their car back after filing 13.

[justbroke]

The agency would need to file an unsecured claim in the bankruptcy. It's that simple. They will be paid or not paid depending on how much disposable income you have over the life of the plan. Even if the creditor were allowed an administrative (priority) claim, it's still paid in the bankruptcy.

The interesting question, that others are surely thinking about is whether, in your State, a repossession automatically removes your ability to use bankruptcy to recover the repossessed vehicle.

In Florida, See Bell-Tel Federal Credit Union (In re Kalter), 292 F.3d 1350 (11th Cir. 2002). That's because Florida (and Alabama) are special in that the debtor loses "ownership of their vehicles upon repossession." (Bell-Tel CU v Kalter)

I wrote about the Florida/Alabama (11th Circuit) precedence because the State in which your case is filed, is controlling. I don't want others reading this thread to be confused because it is so dependent on your State (and sometimes, just sometimes, how nice your creditor wants to be).

For Illinois, if that's your State, I found that the 7th Circuit -- which includes Illinois -- allows a debtor to recover a repossessed vehicle prior to it being sold. See Thompson v. Gen. Motors Acceptance Corp., 566 F.3d 699, 700 (7th Cir. 2009).

[DCrews1981]

Yes I read thru nolo and this site extensively before picking an agency here in Illinois. This state seems to be a different universe when it comes to common or normalcy in laws. The lawyer said he would get the car back the day after the filing or the next day. I asked about the travel and fees and they went as far saying they would have Toyota make arrangements to bring it back to me. I am kind of thinking these are pipe dreams but then again I'm not experienced. It's the largest bk lawyer in Illinois and the money their getting paid I hope it's wrapped in a bow with a smile. Thanks Just your m oedge is invaluable.

[justbroke]

Thanks Just your m oedge is invaluable.

I didn't even know I had "m oedge" (just kidding). Thank you.