Recent Case Clarifies What it Means to Surrender a Vehicle
If you file for Chapter 13 bankruptcy and are required to surrender your vehicle as part of a payment plan, what happens if the car gets stolen? It might seem like an odd question, but it is one that became a significant issue in a recent case before the U.S. Bankruptcy Court for the North District of Illinois. In short, a debtor is not required to physically deliver a vehicle “when she is incapable of doing so through no fault of her own,” according to Judge Timothy A. Barnes. Let’s take a closer look at this recent bankruptcy case. Learning the Facts of In re: Ware In order to understand why the court ultimately decided that the debtor’s Chapter 13 bankruptcy plan could be confirmed despite the fact that she could not physically deliver her vehicle (as required by the plan), we should examine the facts of this case, In re: Ware . Back in early 2011, the debtor bought a 2006 Chevrolet Monte Carlo from a lender, Santander. The purchase agreement came with an inter...