panicking- help please

[SeekingZero]

one of the lenders/creditors (for recreational vehicle I am abandoning/surrendering) filed a "Motion for Relief from Stay". There were about 30 pages of various documents, 5 or 6 motions in all. Is this an effort to try and avoid their debt being cancelled, or am I misunderstanding it?

[despritfreya]

Standard stuff. Unless the lender requests and gets the stay lifted it cannot take possession or get rid of its collateral. Nothing to panic over.

Des.

[SeekingZero]

Standard stuff. Unless the lender requests and gets the stay lifted it cannot take possession or get rid of its collateral. Nothing to panic over.

Des.

Thank you. Its a camper, that my attorney was going to contact the creditor for, and tell them they could come take it. I thought they would just come, reposes it and that would be it. I'm happy to give it back, in fact would like to get it off my property because it reminds me so much of my terrible mistakes. Also, paying for insurance on it. sounds as if they need to go through the court to even do that. I'm surprised that no action has been taken from the Auto lender, which I haven't been paying on for 5 months, maybe that is coming. Same thing, I'm happy to surrender that too. I was worried they were trying to get it lifted to try and start collecting again. This lender was by far the most aggressive the months leading up to the filing, and has a reputation for being aggressive i'm told.. thank you again.

[justbroke]

The Motion for Relief from the Automatic Stay (RFS) will almost always include language that they are seeking to recover the collateral (the camper, car, house) only. This is known as an in rem action which affects only the property. They are not allowed to come after you personally (in personam).

They are just following the rules! No lender, aggressive or not, wants the feel the wrath of the U.S. Bankruptcy Court. I was in a hearing where a woman was called by Verizon 80+ times (she started writing them down and recorded 80 calls). The judge awarded the lady $80,000 for the (documented) phone calls (plus attorney fees). The judge also warned Verizon that one more call, and the judge would add punitive damages of $160,000-$240,000. It's not nice to violate the automatic stay (or the permanent discharge injunction).

[SeekingZero]

Thanks! learning so much here.

[leonel9]

I was in a hearing where a woman was called by Verizon 80+ times (she started writing them down and recorded 80 calls). The judge awarded the lady $80,000 for the (documented) phone calls (plus attorney fees).

This may be a really silly question, but if the lady had a no asset case, and then suddenly was awarded $80k, can the trustee go after this? I get that it's post-petition, but it would certainly make a sizable dent in her debt, if not completely pay it off.

[justbroke]

This may be a really silly question, but if the lady had a no asset case, and then suddenly was awarded $80k, can the trustee go after this? I get that it's post-petition, but it would certainly make a sizable dent in her debt, if not completely pay it off.

I actually won 2 stay violation motions and was able to keep the proceeds. In one of those cases, the judge specifically mentioned that if there were going to be significant punitive damages, because the judge also said that she may make an example out of the creditor, then the trustee and myself could work something out. I did all the work. I ended up getting all of the proceeds and none to the trustee. In a Chapter 13 case it's a little nuanced and in my personal experience, it really depends on whether the judge determines (makes a determination) as to whether damages and/or punitive damages constitute "disposable income". I did not specifically plea to ask for the determination but the judge had interjected that at the hearing.

In a Chapter 7 case, the Trustee and the estate are not entitled to that amount unless the "cause of action" (the reason for the award of damages) came about before filing. Since this was after filing, it would not be property that the trustee could attach in a Chapter 7 case.