Page 97 - Microsoft Word - NEW 2017 Standard Program.docx

Recovery When Bankruptcy Has Been Filed
Upon notification by the debtor that he has filed bankruptcy, all attempts to recover the
collateral must cease. When advised by the debtor of a bankruptcy filing, the Recovery
Agent is to make every effort to obtain the following information from the debtor.

A. Bankruptcy case number
B. The date the bankruptcy was filed

C. Location of bankruptcy court where case was filed

D. The name and telephone number of the attorney handling the bankruptcy (the
Recovery Agent should attempt to contact the attorney by telephone in the presence
of the debtor.)

E. Ask to see a copy of the bankruptcy filing
F. Immediately provide this information to the client

Regardless of whether the debtor can, or will provide, part or all of this
information, the Recovery Agent must cease attempts to take possession of the
collateral until the information is verified. If the debtor cannot verify any of the
requested information and agrees to voluntarily relinquish possession of the
collateral, and the Recovery Agent has a viable witness that the debtor has voluntarily
relinquished possession, the Recovery Agent may secure possession. In lieu of a
witness on scene, the Recovery Agent should complete a Voluntary Surrender form
and have the debtor sign before securing possession.

If the Recovery Agent takes possession and it is later confirmed that the bankruptcy was
filed, the collateral must be returned immediately and the debtor should sign a Vehicle
Redemption form. If the debtor refuses to sign the Vehicle Redemption form, the vehicle
is not to be released without express, written authorization from the client. It is important
that the debtor sign this form so that any subsequent claim by the debtor that the collateral
was damaged after possession was secured can be disputed. Following are some useful
websites to assist in verifying the filing of a bankruptcy proceeding:
1. Bankrupt.com
2. Bankruptcydata.com
3. Ebn.uscourts.gov
4. Lawdog.com
5. Pacer.gov
6. Uscourts.gov

Moving Barriers
Although moving a vehicle or other objects which may be blocking the collateral may not
meet the elements of a violation of law (see State of Florida v Bay Auto Recovery on
page 2, Section 4, Criminal Mischief), only in rare circumstances should such action be
considered when the blocking object is a motor vehicle, and then only with the approval
of the client and recovery agency owner. By moving the blocking