Relief from Stay & Proof of Claim

[coolmom04]

So today was the deadline to have all our paperwork turned in to the BA to fight the presumption of abuse. The attorney is still not worried at all. I logged on to Pacer to see if anything had been filed yet and there is a receipt for a relief from automatic stay payment of $150 and papers where American Honda Finance Company has filed for relief from automatic stay (we already surrendered the vehicles) and also says:

Because AHFC is not receiving any payments... there is no equity... vehicle has been recovered... AHFC's interest is not adequately protected entitling AHFC to relief from the automatic stay for cause, including the lack of adequate protection of its interest in the vehicle, pursuant to Section 362(d)(1).
wherefore, AHFC moves the court for an Order granting AHFC relief... authorizing AHFC to sell the recovered vehicle... AHFC also requests a period of 120 days in which to file a proof of claim for any deficiency balance and asserts that cause exists sufficient to wave the requirement of Bankruptcy Rule 4001(a)(3) therefore allowing an Order to be effective upon the Court's signature."

Okay... so is this just procedure? Are they just basically saying they plan to sell the vehicles and make us liable for the amount left and trying to make it nondischargable? we were told we'd be an asset case, but then all this crap happened with the presumption of abuse, so I don't know what is going on now.

[Meatstick]

Looks pretty standard to me. Based on the Presumption of Abuse it looks like all AHFC wants to do is sell the car and prepare a notice of claim in the event you are converted to a Ch.13. Nothing much to worry about as they are just covering their bases.

[coolmom04]

Ahhh... okay Thank you for your post. I hadn't done much research on this topic.

[ahall]

Good luck

I hope you have better luck than we did. After we turned in the paperwork-2 weeks later we got the motion to dismiss from the Bank Administrator. He stated he found $900 that we could go into a 13--so we are just letting it dismiss. Hoping to use 401K to do what we can and stay under the radar. I wouldn't want to try to fight this with the lousey attorney we have. We'd be better to start over if we have too. I haven't even answered our attorney -she sent us an email- 3 choices -let it dismiss,pay her another 500 and rebut their claims, or go into a 13---So that was that---I hope you get better results!!

[coolmom04]

Oh no I'm so sorry.

[Brazzy]

So today was the deadline to have all our paperwork turned in to the BA to fight the presumption of abuse. The attorney is still not worried at all. I logged on to Pacer to see if anything had been filed yet and there is a receipt for a relief from automatic stay payment of $150 and papers where American Honda Finance Company has filed for relief from automatic stay (we already surrendered the vehicles) and also says:

This is very common. They secured the vehicles but have not sold them. Due to the stay in place they need permission to sell the vehicles. The part about the proof of claim is giving them time to sell the vehicle and apply the proceeds to your loan. Odds are the proceeds from the sale will not pay the loan off in full and they are allowed to file an unsecured proof of claim for the remaining balance. Nothing out of the ordinary.