Redemption: You get to keep your vehicle for "the price a retail merchant would charge given the age and condition of the vehicle"
But how exactly do you get this valuation?
Kelly Blue Book: While previous judges have accepted KBB as a good source, the fact is that KBB only has limited valuations (the price the vehicle would sell in excellent condition and private party resale). Neither of these valuations hold up to the standard set out in 506(a) and judges point this out!
Manheim: Nope. These are auctioned cars and are bought low by dealerships (the retailers) who then in turn sell them higher.
Take the car to a dealership and have a car seller sign an affidavit ("that he is able to testify in court as to what he is saying on the affidavit") that the car would see for $X dollars due to its age and condition: Yes???
The whole purpose of bankruptcy is that debtors do not have a lot of money. And not many car dealers are willing to put there name on the line by signing an affidavit (and what person would show up to court to testify without getting paid if it came to that?)
What about the debtor just stating there opinion?: Well this is close. Lets just say that the creditor does not file a response or object to the motion to redeem. Could the BK court disregard the opinion of the debtor as to its value??? Its possible! Especially since the court can do so if they believe that the debtors valuation is not credible. What?? you mean the fact my client is an unemployed housewife doesnt make her credible to give the valuation of a vehicle based on what a retail merchant would charge given its age and condition???
It seems these days judges are starting to effectively shut down and phase out redemption. Say goodbye to the good ole' days of judges looking at the KBB value the debtor would present and the value the creditor would present and simply taking a number in between those 2 values.
But how exactly do you get this valuation?
Kelly Blue Book: While previous judges have accepted KBB as a good source, the fact is that KBB only has limited valuations (the price the vehicle would sell in excellent condition and private party resale). Neither of these valuations hold up to the standard set out in 506(a) and judges point this out!
Manheim: Nope. These are auctioned cars and are bought low by dealerships (the retailers) who then in turn sell them higher.
Take the car to a dealership and have a car seller sign an affidavit ("that he is able to testify in court as to what he is saying on the affidavit") that the car would see for $X dollars due to its age and condition: Yes???
The whole purpose of bankruptcy is that debtors do not have a lot of money. And not many car dealers are willing to put there name on the line by signing an affidavit (and what person would show up to court to testify without getting paid if it came to that?)
What about the debtor just stating there opinion?: Well this is close. Lets just say that the creditor does not file a response or object to the motion to redeem. Could the BK court disregard the opinion of the debtor as to its value??? Its possible! Especially since the court can do so if they believe that the debtors valuation is not credible. What?? you mean the fact my client is an unemployed housewife doesnt make her credible to give the valuation of a vehicle based on what a retail merchant would charge given its age and condition???
It seems these days judges are starting to effectively shut down and phase out redemption. Say goodbye to the good ole' days of judges looking at the KBB value the debtor would present and the value the creditor would present and simply taking a number in between those 2 values.
Bankruptcy Wizard
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