Legal Question in Bankruptcy in Indiana

Lienholder

We sold a vehicle to an individaul, they filed a chapter 13. The chapter 13 was dismissed without prejudice on April 15, we repossessed the vehicle on April 27th. We've had the vehicle in our possession since then. The people refiled for Bankruptcy on May 19. Their attorney says we have to give the vehicle back. Is this true?


Asked on 5/20/04, 3:23 pm

2 Answers from Attorneys
Eric Southward Southward & Haggard

Re: Lienholder

Yes, until you sell it, that person has a possessory interest in the vehicle. Next time, get the title in your name only or sell it to someone else. You have the right to refuse ansent a showing of insurance.

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Answered on 5/20/04, 8:42 pm
Mary Ann Wunder Wunder & Wunder

Re: Lienholder

You need to file a Motion to Avoid the Automatic Stay and an objection to the Chapter 13 Plan for the new filing. This way the Bankruptcy Court becomes involved in the issues and determines whether you have to return the vehicle.

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Answered on 5/21/04, 1:09 pm


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