11 U.S.C. §521; Redemption of Secured Property
In re Foster, Case No. 05-13797 (Bankr. N.D. Ga. April 2006)(Drake)
Debtors filed a timely motion to redeem their vehicle pursuant to §522, and an order was entered giving the debtors 30 days to redeem the vehicle for the value set forth in their unopposed motion. The debtors ultimately failed to get financing and redeem with vehicle within the time limit, and after expiration of such period, requested an extension. The secured creditor opposed the extension and argued that the debtor’s right to redeem had expired and that the amount proposed by debtors was inadequate.
The court found that the debtors complied with the requirements of § 521(2)(A) by filing their statement of intention within 30 days of the petition date. It was the court’s order with which they did not comply; therefore, they did not lose their right to redeem. The court adopted the majority of courts in holding that a failure to redeem property within the time set by §521(2)(B) does not eliminate the debtors’ substantive right to redeem. However, debtors having failed to comply with the time set forth in the prior motion or timely seek an extension, the court would treat the motion to extend as a new motion to redeem and would determine appropriate redemption amount.