In another thread it was stated "lenders still need an actual default in payment to go forward with a repo." Are there actual consumer laws that address this? For instance the loan on my boat states that if I file bk they have the right to come on my premises and take the boat, nothing about actually defaulting on their loan. Boat is going back just using it as an example as I haven't read the terms of my truck loan yet to see if it says the same or not.
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The future is unwritten. J.S. -
I can't quote specific case law off the top of my head, but yes, those provisions in contracts about BK being a type of default are generally held to be unenforceable and against public policy. I am not a super-expert, but honestly I have not seen or heard of any lawsuit or attempted repo based solely on the fact that the debtor filed BK.
As a practical matter, the creditor does not want to repo the item unless there is an actual loss. Reason being, repo's costs money, there is a huge risk that the item will be in bad shape; a repo represents a last ditch effort to try to minimize a loss. -
Turns out there have been vehicles repoed when the accounts were kept current:
http://www.************************/...in-bankruptcy/
and the outcome (so far) in one of those repoes:
http://www.************************/...per-state-law/The future is unwritten. J.S.Comment
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Ok, thanks for the research. I am a little unsettled by the fact that the first article is unsourced, and frankly, most people in BK do ride throughs on their automobiles and nothing ever comes of it.Comment
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