March 12, 2008
Ford Motor Credit Repos Auto After Debtor Reaffirms and Even Though Debtor is Current on Loan
Apparently, the debtor and his counsel executed a reaffirmation during the bankruptcy and sent it to FMC. The monthly payments, insurance etc were at all times current. After the bankruptcy case closed, Ford picked up the car, a 2003 Escort, without notice or warning, shortly before the holidays. They demanded a full payoff plus repo and storage costs. After receiving a cashier's check, it took a month before they returned the vehicle.
Lively has filed a complaint for violation of the discharge injunction.
Although I don't do a lot of consumer chapter 7 work, I have a client whose vehicle is financed by Citizens Auto Finance. They have refused to accept my client's checks now that the chapter 7 has been filed. 10 days ago I called telling them my client will reaffirm. They promised to send a reaff. Yesterday I received a Motion for Relief - no reaff. Today I called the attorney in Ohio (the chapter 7 is in Los Angeles) and left a voicemail. I will keep you advised.
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