the7thirteen

11th Circuit decision gives hope to some consumers struggling with vehicle title pawns As discussed in detail in a previous blog entry , a 2017 decision by the 11th Circuit Court of Appeals (the Federal Circuit covering Alabama, Georgia and Florida…and all of the good SEC teams) made it difficult or impossible to use Chapter 13 bankruptcy to deal with motor vehicle title pawns.   The 2017 Northington case held that if a bankruptcy case is filed after the “redemption period” on the title pawn has expired (usually a 60-day period), then any ownership interest the borrower/pledgor had in his or her motor vehicle was automatically extinguished.   That meant the title pawn company no longer held a claim that could be addressed in bankruptcy – instead, the company owned the vehicle itself!   The Northington case means that once the redemption period expires, a Chapter 13 bankruptcy plan cannot be used to pay the title pawn loan over time as can be done with most other types of short-te

The bankruptcy process can devolve into a complicated series of forms, procedures, hearings and deadlines.  The average American consumer is as likely to know the basic rules of cricket, be able to list all of the Marvel movies in chronological order, or sing the words to Auld Lang Syne, than to have a working knowledge of how the bankruptcy system works.  So it's not surprising that clients will frequently ask: "When will I know whether or not my creditors rejected my bankruptcy case?"   The short answer is this: Creditors do not get to "reject" your bankruptcy case, and creditors cannot unilaterally deny bankruptcy relief to anyone.    Bankruptcy laws are contained in the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure.  This is federal law, which means bankruptcy cases are administered in the federal court system.  Each federal judicial district has one or more appointed Bankruptcy Judge.  Other professionals, called Trustees, ar