When a separate-creditor may dispose of the collateral outside the method the law prescribes, what period must be set, and what follows if the disposal is not made within it?
General information · Not legal advice
Material to check
In practice material of this kind, we read the bankruptcy trustee's application asking the court to fix the disposal period, the court's decision setting it, and the papers showing that the creditor holds the right to dispose of the collateral by a means the law does not prescribe, since those are the conditions the provision names.
These are types of material to look for, not evidence already verified by PRO SE.
Where readings differ
One reading takes both paragraphs together: where a separate-creditor holds the right to dispose of the object of the separate right by a means the law does not prescribe, the court, on the bankruptcy trustee's application, fixes the period within which the creditor must dispose, and if the creditor does not dispose within that period, the creditor loses that right.
Another reading stresses that the loss of the right attaches only to the period the court actually fixed, so the provision leaves open how the file shows what that period was and when it began to run, and it does not say what follows for a disposal begun before the period expired but completed afterwards.
Your judgment
What in the file could establish whether the disposal was completed within the period the court fixed, and does the court's decision state when that period began?
PRO SE does not make this decision or keep a case record on this public site.When to reconsider
We look at this again if the provision is amended to change what follows from failing to dispose within the period, or to fix the event from which the period runs, or if a court decision explains how the expiry of the period is to be established.