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Neighbors activities Auto Loans

Discussion in 'Auto Loans & Vehicle Repossession' started by vfielder, Jun 10, 2012.

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  1. vfielder

    vfielder Law Topic Starter New Member

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    I have a neighbor who's son filed bankruptsy. The son had a boat that was at his sisters house and was supposed to be picked up by repossessors of the lien holder. Boat disappeared so I figured they had taken it. Well several months later the boat suddenly emerges from the garage and disappears in the dark of night. What type of legal issues are they facing if this is exposed. Nervous living next to them.
     
  2. fredrikklaw

    fredrikklaw Moderator

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    Move it or lose it!

    Do not be anxious or nervous about your neighbors; you can rest assured that all is well on your street and that you are not living next to a Marine Chop-Shop Operation or the Corleone Family. That is of course the long-winded way of saying that your neighbors, specifically the Honorable Son, are not doing anything illegal save for a little bit of cat and mouse play with the finance company; A.K.A. Lien Holders.

    This is what has happened here:

    The son filed for Chapter 7 Personal Bankruptcy and like the good boy he was (forced to be by the B.K. Code), he listed the boat and the finance company as personal property and the Creditor Holding Secured Debt respectively. The lien holders then had the opportunity to show up at the Creditors Meeting to claim the boat, but they did not because it costs a good few thousand dollars to send an attorney to argue in the Bankruptcy Court.

    So, the at the end of the meeting, the son’s debt were discharged and forgiven when the Bankruptcy Trustee brought down the gavel and called time on the proceedings. So anyone with a secured debt who did not show up basically forfeited the security lock, stock, and barrel and the son in this instance became the full owner of the boat by a technical default.

    When this happens, the creditors no longer hold the right to contact the debtor in order to collect the debt or they will be fined $10,000 per attempt. The only way they can take the security back is by repossession in a peaceful and civilized manner. Which is why this boat was locked up inside the garage and not parked on the street where it would be fair game for the finance company to repossess it.

    Now, why was the boat moved in the middle of the night? My best guess would be Night Fishing.

    fredrikklaw
     
  3. despritfreya

    despritfreya Active Member

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    Sorry but this is 98% garbage.

    1. A secured creditor does not have to appear at the 341 meeting to “claim” its collateral.

    2. A Trustee doesn’t discharge anything “at the end of the meeting” by bringing “down the gavel”. All he does is conduct a 10 minute no-big-deal hearing and then mark it as “adjourned”.

    3. Where in the bk Code does it state that the failure of a creditor to appear causes the creditor to have “forfeited the security lock, stock and barrel” and that as a result, the debtor becomes the “full owner. . . by a technical default”? Better yet, where did you come up with this?

    4. There is no per-se fine for attempting to collect a debt and your comment about being fined $10,000.00 is simply wrong.

    The only things about your post that have any semblance of reality are that the lender and boat needed to be listed in the Schedules and that the lender cannot breach the peace in repossessing its property - the second having nothing to do with bk law. If the neighbor does not return the lender’s property or continues to hide it, the lender will seek a Writ of Replevin and have the sheriff obtain possession.

    OP, the issue with the boat is not of your concern. There are ways for lenders to get back their property. If your neighbor is hiding the boat he is no threat to you. He is just plain stupid - nothing more, nothing less.

    Des.
     
  4. fredrikklaw

    fredrikklaw Moderator

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    Pishposh!

    I recently read a fantastic self-help book and I highly recommend it; it is simply a must-read book, one that is unlike all the other garden variety self-help books out there in that it actually does live up to its title. The book’s very appropriate and well chosen title and subtitle are ‘Don’t Respond, it Only Encourages the Bastard!’ and ‘How to recognize and ignore a cyber thug.'

    I can say with confidence that today my little investment in this book paid dividends and the author’s directives really do help you ignore idiocy masquerading as legitimate discussion.

    Eureka!

    fredrikklaw
     

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