Can the bank take my car after I file for Chapter 13 bankruptcy?
Republished with Permission © 2011 Nolo.
I filed a Chapter 13 bankruptcy and have already started paying the court. I sent a payment to the bank for a note owed on my van, but the check was returned. They then came and picked up the van. My work material was in the van along with personal items -- and we have not yet been notified as to where they are. What legal recourse do we have against the bank?
When you're trying to get back on your feet, it seems especially unfair to have the rug tugged.
If payment to the bank was spelled out in your plan -- either outside of bankruptcy or within -- then the bank's action violates a court order, the confirmed plan. Sadly, your recourse is to invoke the slow grinding wheels of justice and sue the bank, within your bankruptcy case. Talk to your bankruptcy attorney about this.