QUESTION

If a creditor gets relief from the automatic stay on a vehicle and the bankruptcy is converted from a chapter 11 to an involuntary chapter 7

Asked on Jun 20th, 2012 on Bankruptcy - Massachusetts
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Does the trustee have the option to take the vehicle?
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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That depends on what the order on the relief from stay motion says.  If it's binding upon conversion, then the creditor can sell or repossess the car.  The Trustee can try to sell it prior to those events occurring.  If it is not binding on conversion, then a new relief from stay motion would need to be filed.   Either way, until the creditor has repossessed and sold the vehicle, the rights and title to the vehicle belong to the Trustee. Mark J. Markus, Attorney at LawCertified Bankruptcy Law Specialist--State Bar of CaliforniaHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/Follow Me on Twitter:  @bklawr
Answered on Jun 20th, 2012 at 3:38 PM

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