Page 96 - CARS Standard Program

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