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Repossessions: Introduction and Listing of Provisions

The Servicemembers Civil Relief Act, formerly codified at 50 U.S.C. app. §§ 501 to 597b, has been recodified at 50 U.S.C. §§ 3901 to 4043. The text of the Act may include references to former Title 50 Appendix sections, which should now be revised to refer to the corresponding sections of Title 50. The statutory citation lists found at the end of each section noting the source(s) of that section remain unaltered.

Title 50—War and National Defense

Chapter 50—Servicemembers Civil Relief

Repossessions: § 3902. Purpose

The purposes of this chapter are—

(1) to provide for, strengthen, and expedite the national defense through protection extended by this chapter to servicemembers of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and

Repossessions: § 3911. Definitions

For the purposes of this chapter:

(1) Servicemember

The term “servicemember” means a member of the uniformed services, as that term is defined in section 101(a)(5) of Title 10 [United States Code].

(2) Military service

The term “military service” means—

(A) in the case of a servicemember who is a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard—

Repossessions: § 3932. Stay of proceedings when servicemember has notice

(a) Applicability of section

This section applies to any civil action or proceeding, including any child custody proceeding, in which the plaintiff or defendant at the time of filing an application under this section—

(1) is in military service or is within 90 days after termination of or release from military service; and

(2) has received notice of the action or proceeding.

Repossessions: 1.1.2 Topics Covered in This Treatise

This treatise deals with the seizure of personal property, including car repossessions, seizure of manufactured homes, repossession of rent-to-own appliances, and threats to seize household goods. This treatise has been cited by the United States Supreme Court1 and by other courts.2

Repossessions: 1.1.3 State Law Variations

As described above, this treatise covers a variety of state statutes, federal laws and regulations, court procedures, and common law theories. With the prominent exceptions of the Uniform Commercial Code (UCC) and federal law, this law varies dramatically from state to state. Even the UCC varies considerably from state to state.

Repossessions: 1.1.4 Organization of This Treatise

Chapter 2, infra, analyzes the scope of Article 9 and other laws under which creditors may claim a right to repossess personal property. These scope issues are a critical initial question in every case, as the consumer’s rights and remedies vary greatly depending on whether Article 9 or some other body of law governs the transaction.

Repossessions: 1.2.2 Researching State Consumer Credit Laws

There are fewer comprehensive research aids for state consumer credit statutes than for the UCC. Secured transactions treatises ignore or quickly pass over retail installment sales acts, small loan acts, and similar statutes. This treatise more extensively covers the repossession aspects of these laws, and Appendix B, infra, summarizes or at least cites key provisions that relate to repossession issues.

Repossessions: 1.2.3 Researching Bankruptcy Law

Another treatise in this series, Consumer Bankruptcy Law and Practice,8 provides a comprehensive discussion of consumer bankruptcy law. Another valuable resource on bankruptcy law, particularly for attorneys doing a substantial amount of bankruptcy work, is Alan N. Resnick and Henry J. Sommer, Collier on Bankruptcy (16th ed. 2009 looseleaf with updates), a multi-volume treatise published by Lexis/Nexis. Numerous other treatises, texts, and handbooks are also available.9

Repossessions: 1.3.1 Why Repossession Cases Are Important

Repossession is one of the most traumatic economic events that can befall a family. Repossession often means loss of the car that a wage earner relies upon to get to work or that a family requires for basic needs such as shopping and medical appointments. Or a family may lose a manufactured home that it relies upon for shelter. Helping families avoid repossession can save them from economic catastrophe.

Repossessions: 1.3.2 Establishing a Repossession Practice

Legal services offices typically see many clients who seek legal help because of an actual or threatened repossession, or more commonly because of a deficiency suit. Many legal services programs establish consumer law units so that they can develop expertise in these and other consumer cases. With a larger number of clients seeking help, a consumer law unit has the ability to spot patterns and identify creditors that are systematically abusing the repossession process.

Consumer Bankruptcy Law and Practice: 1.1.1 Overview

The past fifty years have, with a brief retrenchment after the 2008 financial crisis, seen an explosive increase in the already easy availability of consumer credit in the United States.1 The significantly higher debt loads carried by more and more American consumers, particularly those of low and moderate income, render them and their families vulnerable to enormous financial difficulties when they suffer income interruptions.2 Exorbitant interest rates and fees that quickly accumulate upon a default h

Consumer Bankruptcy Law and Practice: 1.1.2.2 Consumer Bankruptcy Amendments of 1984

The significant benefits of the Bankruptcy Code for consumer debtors were noted early on by creditors as well. Within a year after the Code’s effective date, the consumer credit industry mounted a drive to drastically cut back on the relief obtainable in bankruptcy and, in some ways, to tilt the law in creditors’ favor even more than it had been under the prior Bankruptcy Act.

Consumer Bankruptcy Law and Practice: 1.1.2.3 Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986

In 1986, Congress again made substantial changes in the Bankruptcy Code, passing the Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986.9 Besides adding a substantial number of new bankruptcy judgeships in many judicial districts, the 1986 Act made the many changes necessary to institute a phased-in United States trustee system to handle many administrative functions formerly handled by the court.10 It also created a new chapter 12 of the Bankruptcy Code especially tai

Consumer Bankruptcy Law and Practice: 1.1.2.4 The Bankruptcy Reform Act of 1994

In the waning hours of the 103d Congress, lawmakers addressed bankruptcy once more, passing the Bankruptcy Reform Act of 1994.13 That Act, the culmination of four years of legislative efforts, made changes to numerous parts of the Bankruptcy Code, more changes than any legislation since the original enactment of the Bankruptcy Reform Act of 1978.

Consumer Bankruptcy Law and Practice: 1.1.2.5 The 2005 Bankruptcy Amendments

On April 20, 2005, the President signed the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” (the 2005 Act).37 The Act, 512 pages in length, made significant changes to the Bankruptcy Code and other bankruptcy statutes, and affects nearly every aspect of bankruptcy cases. The Act in general took effect on October 17, 2005. Several provisions, however, became effective upon enactment, while other provisions had individualized effective dates.38