8/31/2023 0 Comments Titlemax online payments![]() The court noted that TitleMax routinely waived forfeiture, citing an extensive list of cases currently in the bankruptcy court where TitleMax did just that. Here, the court found that “bankruptcy-savvy” TitleMax was aware of the debtor’s bankruptcy as well as her proposed treatment of the debt in her plan but elected not to object to confirmation of the plan. Under Alabama law, waiver is defined as relinquishment of a known right and a bankruptcy court may determine that a right has been waived based on a party’s conduct. In contrast, in this case, TitleMax did not affirmatively enter into a new agreement with the debtor, but was found to have waived forfeiture by silence. In this case, TitleMax distinguished Eldridge, as involving the situation where both parties voluntarily entered into new pawn transactions after the forfeiture grace period had ended. TitleMax won the day, establishing that the Pawnshop Act’s forfeiture provision was waivable. TitleMax opposed, arguing that, by ignoring maturity dates and entering into new transactions with the debtor, they waived the right to forfeiture and could continue to collect on the debt. In his bankruptcy, the debtor in Eldridge argued that he was entitled to the return of some of the payments he had made on the vehicle after the 60-day maturity date and grace period expired. Instead, he and TitleMax entered into subsequent pawn transactions. 13, 2020), where the debtor pawned his vehicle and failed to redeem it within the forfeiture period. The court pointed to in ln re Eldridge, 2020 WL 2844358 (Bankr. On appeal, TitleMax argued that, by operation of the Pawnshop Act, the vehicle was not part of the bankruptcy estate and, therefore, TitleMax was not required to object to the debtor’s proposed plan. The Act provides an additional 30-day grace period for redemption. ![]() ![]() At that time, TitleMax filed a motion to “confirm termination or absence of stay.” The bankruptcy court found that, by failing to object to confirmation, TitleMax had waived the forfeiture provision of Alabama’s Pawnshop Act and was bound by the terms of the confirmed plan under section 1327(a).Īlabama’s Pawnshop Act, provides: “ledged goods not redeemed within 30 days following the originally fixed maturity date shall be forfeited to the pawnbroker and absolute right, title, and interest in and to the goods shall vest in the pawnbroker.” Ala. TitleMax raised no objection to the treatment of the loan until three months after the debtor’s plan was confirmed. Her proposed plan provided for payments to TitleMax as a secured creditor. The pawn matured and the grace period for redemption expired before the debtor filed her chapter 13 petition. Prior to filing for bankruptcy, the debtor entered into a title pawn transaction with TitleMax. TitleMax waived its right to forfeiture under a title pawn transaction when it failed to object to treatment of the loan as a secured debt prior to confirmation of the debtor’s plan.
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