In researching whether or not we should reaffirm our autos in MA I came across the below. I thought it would be helpful to post it for others.
One lender from RI who must know how things work in MA didn't send an agreement, another national lender did.
In Re: Koufos, John S., et al. (Lawyers Weekly No. 04-104-10) (4 pages) (Hoffman, J.) (USBC) (Chapter 7 Case No. 09-44158-MSH) (Nov. 8, 2010).
The Judge states:
Full text opinion:
https://ecf.mab.uscourts.gov/cgi-bin/op.pl?msh
One lender from RI who must know how things work in MA didn't send an agreement, another national lender did.
In Re: Koufos, John S., et al. (Lawyers Weekly No. 04-104-10) (4 pages) (Hoffman, J.) (USBC) (Chapter 7 Case No. 09-44158-MSH) (Nov. 8, 2010).
The Judge states:
Under Massachusetts law, the lender of a consumer auto loan may repossess its collateral without a hearing only if the “default is material and consists of the debtors [sic] failure to make one or more payments as required by the agreement or the occurrence of an event which substantially impairs the value of the collateral.” Mass. Gen. Laws ch. 255B, § 20B(a). The Debtors’ bankruptcy filing is, therefore, not a material default under state law and so long as Ms. Koufos remains current on her auto loan, American Honda may not repossess the car without notice and a hearing. Mass. Gen. Laws ch. 255B, § 20B(b).
I am confident that no judge in Massachusetts would permit a car loan lender to repossess its collateral based on a default triggered by a prior bankruptcy filing where payments are current.
I am confident that no judge in Massachusetts would permit a car loan lender to repossess its collateral based on a default triggered by a prior bankruptcy filing where payments are current.
https://ecf.mab.uscourts.gov/cgi-bin/op.pl?msh