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