Yes

There are no statutes or cases on point, but in Sumlin Construction Co. LLC. v. Taylor, 850 So.2d 303 (Ala. 2002), the Alabama Supreme Court held such clauses to be generally enforceable, and consumer debtor and creditor lawyers typically assume ipso facto provisions to be enforceable.

Unclear

Unclear

Unclear

There is no statute or case law on point, and some vehicle lenders have repossessed vehicles for ipso facto default. Several bankruptcy judges have informal policies nullifying the effect of ipso facto clauses in cases where the court does not approve the agreement. In addition, the Recommended Arizona Jury Instructions provide that filing bankruptcy does not fall within the definition of “material breach.”

Yes

Some auto lenders will repossess if the creditor does not reaffirm. Debtors’ counsel report that financial affiliates of “foreign” carmakers generally do not repossess if the debtor is current on payments.

No

C.R.S.A. § 5-5-104.* There must be payment default, or “prospect of payment, performance or realization of collateral is significantly impaired.”

No

Yes

In re Brown, 2009 WL 150630 (Bankr. D. D.C. Jan. 21, 2009), suggests that the district has not enacted statutory provision that would prohibit ipso facto.

Yes

6 Del. C. §§ 9-609 and 9-201. In re Anderson, 348 B.R. 657 (Bankr. Del. 2006).

Yes

In re Waters, 248 B.R. 916 (Bankr. M.D. Fla. 2000).

Yes

There is a presumption that creditors have the right to repossess for ipso facto default. Debtors’ counsel report that few creditors have done so where the debtor fails to reaffirm but is otherwise current.

Yes

Some auto lenders will repossess for ipso facto.

No

Idaho Code § 28-45-107.* Burden is on creditor to show significant impairment. In re Steinhause, 349 B.R. 694 (Bankr. D. Id. 2006) (suggesting default on filing clause is unenforceable).

Yes

Presumption that Illinois courts will enforce. Secured creditors commonly enforce an ipso facto clause if the debt is not reaffirmed.

No

A.I.C. § 24-4.*

Unclear

Under I.C.A. § 537.5109,* the burden is on the creditor to show significant impairment. However, some auto lenders have repossessed for ipso facto default.

No

K.S.A. § 16a-5-109.* Burden is on creditor to show significant impairment. In re Rowe, 342 B.R. 341 (Bankr. D. Kan. 2006) (bankruptcy filing does not constitute significant impairment where debtor current on payments). However, the issue is currently pending before the Kansas Supreme Court in Dennis Hall v. Ford Motor Credit Co. Inc. Case No. 09-1033670-AS.

Unclear

Kentucky law permits ipso facto default, and some creditors will repossess if the debtor does not reaffirm. However, the court in In re Sutton, 324 B.R. 624 (Bankr. W.D. Ky. 2005), in ruling on a dischargeability proceeding, held that § 541(c)(1)(B) nullifies the effect of an ipso facto provision.

Yes

There is no law or case limiting the type of default that will trigger foreclosure or repossession under LA UCC Part VI.

No

ALM GL ch. 255B, § 20A. Only a material default is enforceable, which is defined as a buyer’s failure to make one or more installments, or which substantially impairs the collateral.

No

9-A M.R. S.A. § 5-109.* Burden is on the creditor to show significant impairment.

Unclear

Under In re Jones (see WV), bankruptcy is a non-trivial default and would be grounds for ipso facto repossession. However, this issue is on appeal to the U.S. District Court in the case of Robertson v. Ford Motor Credit Company, Case No. 08-12415.

Yes

There appears to be no specific statute or case law, but Ford Motor Credit Inc. and other vehicle lenders will repossess based on ipso facto bankruptcy filing if the debtor does not reaffirm.

Yes

Rodgers v. General Electric Capital Corp., 596 N.W. 2d 671 (MN App. 1999).

Unclear

There is no statutory or case law, but debtor counsel reports that repossession if the debtor is current is not common.

No

Under Mo. State. Ann. 408.522, debtor must be in default or creditor must show that its security in the collateral is “significantly impaired.” In re Schmidt, 397 B.R. 481 (Bankr. W.D. Mo. 2008).

Unclear

There is no law or case on point, and no clear practice in Montana. Debtors’ lawyers believe that a court is not likely to enforce an ipso facto clause.

Yes

There are no statutes or published cases on point, but Nebraska courts will generally enforce an ipso facto clause.

Unclear

The law is unclear and there are no reported cases. However, Ford Motor Credit Co. has repossessed vehicles if the debtor does not reaffirm.

No

N.H. RSA 361-A:7 (IX)(b)(5). Prohibits provision allowing for default for commencing bankruptcy in retail installment contract.

Yes

State courts will enforce an ipso facto clause.

Yes

New Mexico courts will enforce. Creditors have repossessed vehicles where the debtor retains but does not reaffirm.

Yes

Although New York law permits enforcement of an ipso facto default clause, in the past, debtors would commonly retain and pay without reaffirming. However, in recent months, a national auto lender has started to repossess vehicles if the debtor does not reaffirm.

Yes

Presumption that North Carolina courts will enforce.

Yes

There are no reported cases, but both filing bankruptcy and discharge of personal liability are considered by creditors to be events of default that allow acceleration of the debt and repossession of collateral.

Yes

Creditors may repossess for ipso facto default.

No

14A Okl. St. Ann. § 5-109.*

Probable

Presumption in favor of enforcement of contract provisions in absence of statutory prohibition.

No

69 P.S. § 615(B). Malachin v. DaimlerChrysler Financial Servs. (2007 Pa. D. & C. LEXIS 158).

No

R.I. Gen. L. 6-51-3(a). In re Visnicky, 401 B.R. 61 (Bankr. R.I. 2009) (R.I. enactment of Uniform Consumer Credit Code made ipso facto clause unenforceable).

No

S.C. Code 1976 § 37-5-109.*

Yes

Presumption that South Dakota courts will enforce under SDCL 57A-9-609.

Yes

TC § 47-9-609 provides that the creditor may take possession of the collateral “after default.”

Yes

There appears to be no specific statute or case law, but some auto lenders will repossess for ipso facto default if the debtor does not reaffirm.

No

U.C.A. 1953 § 70C-5-109.*

Yes

Lisa Kleinfeldt v. DaimlerChrysler Financial Services America LLC (Vermont, Addison County, Superior Court Docket No. 19-1-07) (bankruptcy default clause in retail installment contract not substantially unconscionable).

Yes

Virginia courts will enforce an ipso facto clause.

Yes

There are no cases on point, but there is no statute that would prevent ipso facto repossession, and repossessions have occurred.

Yes

DaimlerChrysler Financial Serv. America LLC v. Jones (In re Jones), 591 F.3d 308 (4th Cir. 2010) (bankruptcy filing not trivial default, therefore West Virginia law permits repossession for ipso facto default).

No

W.S.A. 425.103(2).*

Yes

There is a presumption that Wyoming courts will enforce.