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March 12, 2008

Ford Motor Credit Repos Auto After Debtor Reaffirms and Even Though Debtor is Current on Loan

Press Release From local bankruptcy Attorney Peter Lively can be accessed here. 

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.         

March 12, 2008 in Current Affairs | Permalink

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