Posted on May 09, 2014

A Houston bankruptcy judge recently made it abundantly clear that once a chapter 13 bankruptcy case is filed, a recovery company (repossession company) must give the repossessed truck back, and if it's damaged while they had it, they must pay damages. Ramirez v. Mr. Transmission, et al, Adversary No. 13-03067, U.S. Bankruptcy Court Southern District of Texas, Memorandum Opinion of May 6, 2014.

Jimmy Ramirez had his 2001 Ford F250 repossessed for a mechanic's lien. He filed chapter 13, and the mechanic and the repo company apparently got cross-wise about returning the truck, so Ramirez sued them both.

U.S. Bankruptcy Judge Marvin Isgur ruled after a trial that the mechanic and the repo company both must pay Ramirez's damages, including physical damage to the truck, attorney fees and costs, and punitive damages to be determined at a later hearing.

So if you are in financial trouble and have a vehicle repossessed in Houston or surrounding counties, don't hesitate to hire a good bankruptcy lawyer to file chapter 13. So long as the vehicle has not already been sold, it should be possible to get it back, and quickly. And if it has been damaged, you should also be able to recover the cost of repair. Call our office anytime at 713-772-8037 for an appointment or for free infomation.

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J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization