Frequently Asked Questions (FAQs)
Q: What is Collateral Bankruptcy Services, LLC (or “CBS”)?
A: Collateral Bankruptcy Services is a consulting and service company that, in part, provides Chapter 7 Trustees, debtors, and debtor’s counsel with assistance in lawfully towing and storing collateral no longer desired to be kept by the debtor.
Q: Why do I, as a debtor or debtor’s attorney, care about vehicles surrendered incident to a bankruptcy case?
A: To eliminate expense, liability and exposure.
Q: What value does Collateral Bankruptcy Services provide to me?
A: As the debtor or debtor attorney, many times you are faced with the challenging questions surrounding “what do I do with my unwanted automobile” now that I am going to surrender it in my bankruptcy?
- Dealership won’t take the vehicle back?
- Branch Bank won’t take the vehicle back?
- I don’t want the repo-man to take the vehicle while out and about!
- What if the vehicle is damaged or stolen?
Collateral Bankruptcy Services solves all of the above problems. In doing so, Collateral Bankruptcy Services will:
- Pick up and tow your surrendered vehicle
- Safely and securely store your surrendered vehicle
- Notify your secured creditor of the surrendered vehicle’s location
- Arrange return of your surrendered vehicle
Collateral Bankruptcy services will do all of the above pursuant to state and local governing law . . . and will do so at NO COST to you.
Q: Why should I worry about surrendering the vehicle “properly?” Can’t I just let the repo-man get it?
A: You could. But you have expense, potential liability and embarrassment associated with this hands-off approach. The prudent act of properly surrendering your vehicle and having it lawfully and safely secured by a towing and storage company like Collateral Bankruptcy Services is important and appropriate.
Q: What is the “expense” or “potential liability” that a debtor has by not surrendering his or her vehicle through Collateral Bankruptcy Services?
A: Your client has the continued expense of insurance on the automobile... and if he or she does not insure the automobile and still drives it, they run the risk of getting in an accident and facing further litigation and debt problems. Surrendering the vehicle through Collateral Bankruptcy Services eliminates these problems and protects their fresh start.
Q: Does the debtor or debtor’s attorney have to pay Collateral Bankruptcy Services any fees for the services it provides?
A: No. As indicated above, Collateral Bankruptcy Services is paid by the secured creditor, not by the debtor or debtor’s attorney.
Q: How much does it cost the debtor or the debtor’s attorney to have a vehicle towed?
A: Nothing. Again, there are no out-of-pocket costs to the debtor or the debtor’s attorney. Collateral Bankruptcy Services collects its fees and costs from the secured creditor at the time it picks up the surrendered vehicle.
Q: Do I, as the debtor or the debtor’s attorney, need to coordinate the surrender of the vehicle with Collateral Bankruptcy Services?
A: Yes. Collateral Bankruptcy Services will do all the work to coordinate the surrender and pickup of the vehicle. In fact, Collateral Bankruptcy Services will, however, come to the vehicle to pick it up; you do not need to take the surrendered vehicle anywhere.
Q: What do I need to do to have Collateral Bankruptcy Services pick up and secure a surrendered vehicle?
A: Provide us with:
(1) Debtor’s Name,
(2) Year, Make and Model of the surrendered vehicle; and
(3) Location (i.e., address) of the surrendered vehicle.
Q: Where and/or to whom do I send the above information?
Q: Where and when are surrendered vehicles picked up?
A: Typically at a time and place of the debtor’s choosing. It is Collateral Bankruptcy Services’ goal to amicably work with the debtor or debtor’s attorney in coordinating the surrender of vehicles
Q: What about boats, RVs, motorcycles, ATVs – will Collateral Bankruptcy Services also arrange to pick up such other surrendered vehicles or collateral?
A: Yes. Please follow the same procedures above when requesting Collateral Bankruptcy Services arrange the transfer of such surrendered vehicles or other collateral.
Q: Does CBS pick up collateral other than just cars?
A: Yes. Collateral Bankruptcy Services will pick up just about any collateral for a loan. Boats, Recreational Vehicles (RVs), All Terrain Vehicles (ATVs), Mortorcycles and Jet Skis are all types of assets that CBS will pick up if you have decided to surrender them in your bankruptcy.