DebtStoppers Wins 7th Circuit Appeal
Repossessed Cars Now Returned Immediately

Thanks to a successful appeal filed by the Chicago Law Office of Robert J. Semrad and Associates, individuals now can recover their repossessed vehicle immediately upon the filing a bankruptcy. In a recent decision, the United States Court of Appeals for the Seventh Circuit has reinterpreted the application of federal bankruptcy law in Illinois, Indiana, and Wisconsin to the benefit of bankruptcy filers seeking to reorganize their debts. Traditionally in Illinois, bankruptcy filers were forced to litigate in order to recover vehicles or other property repossessed by creditors prior to their bankruptcy filing. In addition to the problems created simply by losing possession of what is often their primary means of transportation to work, this practice left open the possibility of creditors withholding necessary property in order to negotiate unofficial, preferred treatment within the bankruptcy.

With this opinion, upon a bankruptcy filing creditors must immediately return most repossessed property. This change helps bankruptcy filers return to their daily lives more smoothly, aiding them in working to pay their creditors within the limits of the United States Bankruptcy Code.