Legal Question in Bankruptcy in North Dakota
stay in bankruptcy
If a creditor reposesses a vehicle just before the petition is filed are they allowed to retain and sell the vehicle after the stay is in place? This is a business debt and there is no equity in the vehicle.
Asked on 10/02/97, 9:48 pm
1 Answer from Attorneys
Daniel Press
Chung & Press, P.C.
Bankruptcy stay prevents sale
The automatic stay bars the sale of the seizedcar, and the debtor is entitled to its return.However, if the car has no equity and the debtor does not bring payments current andreaffirm (or otherwise provide adequateprotection for the lender's interest) in aCh. 7, or include the arrearage in a confirmableplan in a Ch. 13, the lender can have the courtlift the stay and then repossess the car.
Answered on 10/03/97, 8:40 am
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