So is this a violation of the automatic stay?

[outsidetool]

Wife and I filed back in December 2014. Plan confirmed mid Feb. 2015. Have been happily making payments. We're a 100% case. There was a car that my wife had financed for her daughter (my stepdaughter). Car was put in to the plan. Finance company was a smaller 'high risk" joint with a high interest rate. The 13 plan greatly reduced the interest %; needless to say the finance people are none too happy. Suddenly tonight, a repo truck grabbed the car. Repo guy actually told my wife that the finance company wanted the car back because "the trustees office hadn't contacted them." We know they're aware of the case...phone calls stopped, and they've filed a claim! Hoping it won't be a pain to get the car back, and I'd like to crucify them for the violation as much as possible. Anyone see anything I'm missing here? Repo guy also said that "this happens all the time." I can't imagine that repos are going on "all the time" all because a finance company is upset that the trustees office didn't communicate fast enough...and even if so...isn't the proper action for the finance company to contact our atty or even the trustee's office, before just deciding to repo?
Any comments appreciated.

[justbroke]

This is a violation of the automatic stay. The automatic stay is extended for any property that is covered by the Plan of Reorganization (the plan). This is what they call an egregious violation of the automatic stay because they actually took the property and refuse to return the property. Additionally you can recover attorney fees and costs that you incurred since they took the property and refuse to return the property. In Florida, a judge awarded $30 a day for a car rental as well as other costs and attorney fees. It ended up costing the car lender over $30K (if I'm remembering correctly) in sanctions.

It does not matter what they "believe" is correct or that they thought they acted in good faith. They knew that there was a bankruptcy, filed a claim, and still intended the actions which included repossession of the car.

Get on the phone with your attorney TODAY. Your attorney will make a demand for the return of the vehicle. I would also push my attorney to file a Motion for Sanctions for the Willful Violation of the Automatic Stay or at least for sanctions under the court's equitable powers. This is egregious in every sense of the meaning of that word. If they are in the plan and filed a claim, there is absolutely no excuse unless they filed for and received relief from the automatic stay.

Please, please, for the sake of other debtors out there, make them an example of what not to do. Your attorney may push back and say that they're going to immediately return the car, but this is not a "technical" violation of the automatic stay where they did not know. This is the type of action which requires... no... demands that you bring this before the court.

[dmc-2008]

Keep us posted what you do!!! Good luck and I hope you get the car and them back!!!' Go get'em!!!

[outsidetool]

Greetings all! Car was returned the next day within hours; washed and with a full tank of gas. A motion for contempt was also filed. Of course the company involved is claiming that this was all an error. Atty says the court will likely give them a minor sanction since they returned the vehicle promptly and will claim they simply had a "left hand didn't know what the right hand was doing" internal issue.

[dmc-2008]

Yay you got it back!!!! Congrats!!!!

[justbroke]

Greetings all! Car was returned the next day within hours; washed and with a full tank of gas. A motion for contempt was also filed. Of course the company involved is claiming that this was all an error. Atty says the court will likely give them a minor sanction since they returned the vehicle promptly and will claim they simply had a "left hand didn't know what the right hand was doing" internal issue.

I am not surprised that they "immediately" returned the vehicle. I am very happy that your attorney has followed through with a motion for contempt because creditors will continue to do this, and claim "it was an accident", and get away with it. The fact that they get away with it or plead that they didn't know anything should not be a reason to not file a Motion for Sanctions/Contempt.

Thank you for the update.