[CLBS] Outrageous Interest

[Ford Elsaesser]

perfection confirmed thru dmv website?that could be critical-if unperfected 
debtor would still need to pay value of truck thru a 13 but no 17.5 interest

if lender is perfected-i agree with cam-the "till" rate should not excee 5-7 
pct range..
----- Original Message ----- 
From: "Cam Phillips" <camphillipslaw at gmail.com>
To: "Ryan Earl" <ryantearlattorneyatlaw at yahoo.com>
Cc: "Bankruptcy list" <clbs at admws.idaho.gov>
Sent: Saturday, August 04, 2012 3:21 PM
Subject: Re: [CLBS] Outrageous Interest


> One way to deal with this would be Ch 13.  The interest becomes 6%,  and 
> there's a lot more flexibility.
>
> But is the lender secured w/o it's name on the title?  As to the TR as 
> bfp,  I don't think so.  Look at that b4 you do anything else.
>
> We regularly negotiate the int down with the hi int lenders in chap 7, 
> but if the trust really owns the truck there is NO interest on its non 
> exempt value in a 13.
>
> Interesting issues.
>
> Cameron Phillips
> Attorney at Law
> 924 Sherman Ave.
> Coeur d' Alene, Idaho 83814
> 208  667 5437
>
> On Aug 4, 2012, at 11:19 AM, Ryan Earl <ryantearlattorneyatlaw at yahoo.com> 
> wrote:
>
>> Fellow list-mates,
>>
>> I am looking for some insight on a "secured" transaction regarding a 
>> clients semi-truck. Client took semi-truck title to a title loan company 
>> and borrowed money for repairs. Client made several payments and then 
>> filed bankruptcy. (This was not the deciding factor, or only factor, but 
>> has quickly become an issue.) The clients need the semi for work--He is 
>> an independent long haul truck driver. Interest on this agreement is 
>> 17.5% a month--outrageous, I know. I don't believe that this company has 
>> filed an UCC lien, but does have the title. Originally my clients were 
>> going to reaffirm. I just do not think that is an option. Now to the 
>> questions:
>>
>> 1) Is there away to argue that the interest should not have accrued 
>> during the automatic stay and prior to the reaffirmation agreement, 
>> something along those lines? Or, more importantly,
>>
>> 2) Has anyone disputed the secured nature of these loans? I am think 
>> about amending the debtors' intent and then file a motion to determine 
>> dischargeability---
>>
>>
>> Any insight or thoughts would be greatly appreciated.
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>
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