Need Explanatation of 'Motion for Relief from Stay' in Bankruptcy Case

Need Explanatation of 'Motion for Relief from Stay' in Bankruptcy Case

winter@citadel.com (Winter)	8/25/2003 10:28:54 AM
I recently hired a lawyer and filed for bankruptcy, in Texas, and I included my car, on which I owe $1800, on the list of creditors. My lawyer said that I would have 45 days to surrender the car to the finance company, Primus Financial Services, and that they would be contacting me when they received notice of the stay. They have not contacted me about picking up the car, but I did receive a notice in the mail that their attorney has filed a motion for relief from stay, and it indicates a meeting to be held on September 17. I do not understand the text of the motion. I don't know if they are trying to come repo the car, which is fine by me, as I'm no longer driving the car, or if they are trying to collect the money still. I thought the latter was what the bankruptcy protected me from. The parts that I find confusing are these... 5. There is now due and owning to the Movan by the Respondent a net balance of $1,837,78. Respondent is in default for the payment due on JUNE 23, 2003, and for all subsequent payments... 6. The nonpayment is highly prejudicial to Movant due to the collateral's vulnerability to both physical and economic depreciation through Respondent's use of the collateral. This depreciation leaves the Movant in imminent danger of suffering irreparable harm through the collateral's loss of market value for which Movant shall have no adequate remedy at law; thus depriving Movant of Adequate Protection under 11 U.S.C 361. 7. Movant would further show that it has been advised that Debtor has failed to maintain insurance on said collateral. 8. Respondent retains no equity in the collateral, and the collateral is not necessary for the reorganization or rehabilitation of the estate. Therefore, under 11 USC 362, the Automatic Stay should be liftend and Movant should be allowed to forclose its seceurity interest in the collateral. Can someone explains what this means in plain English? Do they just want to take the car back? Thanks Please do not reply to the return address. Please reply to my Yahoo! account, winterene



cj.green@worldnet.att.net (Christopher Green)	8/25/2003 2:01:50 PM
winter@citadel.com (Winter) wrote in message news:<70e3370.0308250928.50271e55@posting.google.com>... I recently hired a lawyer and filed for bankruptcy, in Texas, and I included my car, on which I owe $1800, on the list of creditors.... I did receive a notice in the mail that their attorney has filed a motion for relief from stay, and it indicates a meeting to be held on September 17. I do not understand the text of the motion.... Basically, it means they want the car back. They are reciting the reasons why the court should allow them to take the car back, even though their attempt to do so would have been blocked by the automatic stay. The motion just parrots the text of the bankruptcy code; that's why it is so mind-numbing. The big points are whether their interest is adequately protected and whether the car is necessary to the estate. If the car is indeed in your possession and uninsured, they have a reasonable claim that their interest is not adequately protected. If the car were wrecked tomorrow, they would be left with only the salvage. Their claim that the car is not necessary to the rehabilitation of the estate is fifty-dollar words for "he doesn't need the car". If you really use the car (but how could you, if it's not insured?) to get to work, that claim may not hold up. Since you have a lawyer, you really need to go by what your lawyer says, not us kibitzers. -- Not a lawyer, Chris Green



"Brett Weiss"	8/25/2003 7:33:51 PM
They're asking the bankruptcy court to lift the automatic stay that went into effect when you filed, so that they can repossess the car. They can't go after you for the debt; they can only enforce the lien against the car by repossessing and selling it. They must take whatever they receive at the auction in payment, since your Chapter 7 will discharge any personal obligation of yours. -- Brett ***************************************************************** * Personal Injury/Malpractice Bankruptcy * * * * BRETT WEISS, P.C. * * Attorneys at Law * * Maryland, D.C. and Federal Bars * * lawyer@erols.com * * http://www.erols.com/lawyer * * * * Small Business Estates & Estate Planning * ***************************************************************** The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review all of the facts and the law applicable to your situation. ***************************************************************** "Winter" <winter@citadel.com> wrote in message news:70e3370.0308250928.50271e55@posting.google.com... I recently hired a lawyer and filed for bankruptcy, in Texas, and I included my car, on which I owe $1800, on the list of creditors. My lawyer said that I would have 45 days to surrender the car to the finance company, Primus Financial Services, and that they would be contacting me when they received notice of the stay. They have not contacted me about picking up the car, but I did receive a notice in the mail that their attorney has filed a motion for relief from stay, and it indicates a meeting to be held on September 17. I do not understand the text of the motion. I don't know if they are trying to come repo the car, which is fine by me, as I'm no longer driving the car, or if they are trying to collect the money still. I thought the latter was what the bankruptcy protected me from. The parts that I find confusing are these... 5. There is now due and owning to the Movan by the Respondent a net balance of $1,837,78. Respondent is in default for the payment due on JUNE 23, 2003, and for all subsequent payments... 6. The nonpayment is highly prejudicial to Movant due to the collateral's vulnerability to both physical and economic depreciation through Respondent's use of the collateral. This depreciation leaves the Movant in imminent danger of suffering irreparable harm through the collateral's loss of market value for which Movant shall have no adequate remedy at law; thus depriving Movant of Adequate Protection under 11 U.S.C 361. 7. Movant would further show that it has been advised that Debtor has failed to maintain insurance on said collateral. 8. Respondent retains no equity in the collateral, and the collateral is not necessary for the reorganization or rehabilitation of the estate. Therefore, under 11 USC 362, the Automatic Stay should be liftend and Movant should be allowed to forclose its seceurity interest in the collateral. Can someone explains what this means in plain English? Do they just want to take the car back? Thanks Please do not reply to the return address. Please reply to my Yahoo! account, winterene



Paul Robinson	9/18/2003 9:57:32 PM
Winter wrote: The parts that I find confusing are these... 5. There is now due and owning to the Movan by the Respondent a net balance of $1,837,78. Respondent is in default for the payment due on JUNE 23, 2003, and for all subsequent payments... "We are the finance company of your car. You owe us that much money. You haven't paid us." 6. The nonpayment is highly prejudicial to Movant due to the collateral's vulnerability to both physical and economic depreciation through Respondent's use of the collateral. This depreciation leaves the Movant in imminent danger of suffering irreparable harm through the collateral's loss of market value for which Movant shall have no adequate remedy at law; thus depriving Movant of Adequate Protection under 11 U.S.C 361. "You have the car. You could hide it. Every day you have it causes it to become less valuable. If we don't get it back we might not get anything at all." 7. Movant would further show that it has been advised that Debtor has failed to maintain insurance on said collateral. "You could have an accident and total the car when you're not carrying insurance, leaving us with nothing." 8. Respondent retains no equity in the collateral, and the collateral is not necessary for the reorganization or rehabilitation of the estate. Therefore, under 11 USC 362, the Automatic Stay should be liftend and Movant should be allowed to forclose its seceurity interest in the collateral. "The car has no residual value for you. We want the court to release the hold you placed on the car as a result of filing bankruptcy so we can repossess the car." Can someone explains what this means in plain English? Do they just want to take the car back? That's exactly what it means. -- Paul Robinson "Above all else... We shall go on..." "...And continue!" "If the lessons of history teach us anything it is that nobody learns the lessons that history teaches us."

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