Insight on violation of automatic stay – Valid repossession?

[Ms007]

Back story;

On April 12th, Monday, I filed for chapter 7 pro per in AZ. On Tuesday I receive a call from my auto lender (which is a buy-here/pay-here dealership).

My account rep phoned me on Tuesday as I was late on this last payment, which I had previously phoned and let them know I sent a check. I also let him know that on Monday I filed bankruptcy. I told him that I didn’t have a copy of my petition at work with me and didn’t know the case number but that it is filed with the bankruptcy courts if he needed to see the filing asap.

I also let him know that since I have filed that I would be able to get current on last payment and payments going forward as I intended to negotiate a reaffirmation as stated on the SOI that I also filed on Monday.

I also told him that if I was able to I would try to leave work a little early and get a copy of the petition and take it over to them for their files. (Their offices are right across the street from my complex) But if not I would bring it in on Wednesday morning and fax over a copy of the petition. I wasn’t able to get in time before they closed and I wasn’t too worried as we JUST had a conversation letting him know I filed with the courts. Later that evening intended to I head out to do some grocery shopping and wouldn’t you know it my car is gone. I phoned the condo complex to see if the HOA towed it (again), nope. So I phone non-emergency and they stated they have on file from the tow yard that they repo’d my car that night.

My question is, is this a valid repo since I hadn’t yet provided a copy of the petition?

[DebtEnder]

The automatic stay is automatic. Once informed they have no excuse to take the car w/o going via a relief of stay motion. This is a small shop trying to get their stuff back hoping you won't come after them. If nothing else go there with paperwork in hand and tell them to release the car back to you immediately in exact condition it was in when taken or deal with the court.

On a side note did you record the phone convo. In Az I believe as subscriber to the phone line you can record any conversation on your line.

[frogger]

The automatic stay is automatic. Once informed they have no excuse to take the car w/o going via a relief of stay motion.

True, however a case number or copy of the filing was not given to the dealer. People lie all of the time about filing bk.

This is a small shop trying to get their stuff back hoping you won't come after them. If nothing else go there with paperwork in hand and tell them to release the car back to you immediately in exact condition it was in when taken or deal with the court.

I agree with this. Take a copy of your bk filing cover sheet that has the case number and date on it and pick up your car. If they don't allow it, then let the fun begin.

[Ms007]

DebtEnder & Frogger Thanks so much.

Here's the update.

I sent a letter and copy of the petition via fax to the bankruptcy department reiterating that I filed bk on Monday & provided the case #. I also stated the date and time and location of the reposession and stated that per section 11 U.S.C. 362(a) of the United States bankruptcy code the reposession was a violation of the automatic stay. I concluded the letter with a quick list of what section 11 U.S.C. 362(a) states a creditor cannot do. And closed the letter with "A violation of these prohibitions may be considered contempt of court and can be punished accordingly"

I gave it an hour or two.... posted on the forum to get your advise and decided to give them a call.

They said I could pick my car up this evening after work.

Thanks again... I tell ya, this forum has been so incredibly helpful.

[frogger]

Glad it worked out for you. Good luck!

[justbroke]

The power of the automatic stay is awesome, isn't it?