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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Sam:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>This article may give you a start. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a href="https://upsolve.org/learn/chapter-13-and-divorce/">Chapter 13 While Getting a Divorce: Probably a Bad Idea (upsolve.org)</a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>And this case may … may … touch on your issue. I just glanced at it, so you’ll have to parse it. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a href="https://www.neb.uscourts.gov/sites/neb/files/opinions/Lillie_Smith%2C_Ch._13%2C_BK97-80710.pdf">Lillie Smith, Ch. 13, BK97-80710 (uscourts.gov)</a><o:p></o:p></p><p class=MsoNormal><br>I’m no divorce attorney, that’s for darn sure. But did the decree that distributed the auto to the wife say anything about the debt secured by it? I’d have to check my own auto loan documentation, but I would be surprised to find a due on sale clause in it. The auto was certainly community property during the marriage. I would have thought that the H’s attorney would have made sure the debt went with the vehicle as between them. You’re right, of course, that this wouldn’t preempt the lender’s right to repo the auto in the first instance, or to proceed against the H for a deficiency. But I would be surprised if the decree didn’t have the effect of transferring ownership to the W, regardless of title. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>My very, very limited experience with personal bankruptcy tells me that the W can probably stay collection on the auto loan through a Chap. 13 filing, but the lender would probably have an opportunity to seek relief from the stay from the court as a secured creditor. Also, H is still a borrower. Lender can almost certainly seek to collect from him. Whether H would have some sort of remedy against W would probably depend on the precise terms of the divorce decree. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>My two cents and worth every penny. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>John J. Sullivan<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>samuel@meylerlegal.com<br><b>Sent:</b> Thursday, April 7, 2022 12:48 PM<br><b>To:</b> 'WSBA Real Property Listserv' <wsbarp@lists.wsbarppt.com>; 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Off Topic Issue - Bankruptcy/Community Property Question<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Mates,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I have an off-topic bankruptcy/community property question and was hoping that one of you out there that practices bankruptcy law might be able to help. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>H purchased a vehicle while H and W were married. H was the only one on the loan and the only one on title. H and W get divorced and the W is awarded the vehicle in the divorce. Nobody makes payments on the vehicle for a period and lender attempts to repossess the vehicle. W files Chapter 13 BK. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Generally, I don’t think that the divorce decree has any bearing on the lender’s rights, but does the divorce decree or even simply W’s possession of the vehicle give W the right to include the lender as a secured creditor in the bankruptcy? Does filing bankruptcy protect W from having the vehicle repossessed given that she is not on the loan or title?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I appreciate any thoughts or legal authority on this and would love to chat with someone knowledgeable in these matters. Thanks.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Sam <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Samuel M. Meyler</span></b><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Meyler Legal, PLLC </span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>1700 Westlake Ave. N., Ste. 200<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Seattle, Washington 98109</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Tel:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7770<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Fax:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7771<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Email:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><a href="mailto:samuel@meylerlegal.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>samuel@meylerlegal.com</span></a><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>NOTICE:</span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'>This electronic message contains information which may be Confidential or Privileged and constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act 18 USC 2510. 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