the7thirteen

  In previous blog posts I’ve discussed decisions from the 11th Circuit Court of Appeals (covering Alabama, Georgia and Florida…all the best SEC teams) on the ability to deal with motor vehicle title pawns in bankruptcy.   You can view the prior posts here and here .   Last year, interpreting Alabama law, the 11th Circuit ruled that a vehicle owner who filed bankruptcy before the expiration of the title pawn redemption could use Chapter 13 bankruptcy to modify the pawnholder’s rights and pay the loan back over time.   If you’re new to the concept, a title pawn allows you to obtain cash, in the form of a high-interest loan, by pawning your motor vehicle title.   If you do not repay the loan and interest by the end of the agreed time – usually a 30-day “redemption period” followed by a 30-day “grace period,” – ownership of the vehicle passes to the title pawn company.   For many years, bankruptcy was an option that consumers could use to hang onto their vehicles by repaying title pawn