Tag: repossession

Bankr. E.D.N.C.: In re SRCR, L.L.C.- Turnover of Airplane

Summary:

SRCR pledged a Piper Navajo Airplane as collateral for a loan to Park Sterling. After default on the loan, Park Sterling repossessed the airplane on February 3, 2012. SRCR filed a Chapter 11 bankruptcy on February 21, 2012. When Park Sterling refused to return the airplane, SRCR filed a Motion for Contempt and Park Sterling responded with a Motion for Relief.

The bankruptcy court began by holding that if a creditor refuses to turnover property that was repossessed prior to the petition date, the creditor must ensure that the issue of rightful possession is promptly placed before the court. Despite not filing its own Motion for Relief for several weeks, the bankruptcy court found that the debtor’s motion for contempt and sanctions and the response filed by Park Sterling placed the issue of rightful possession of the airplane before the court in a timely manner.… Read More

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Bankr. M.D.N.C.: In re Sauls- Failure to Turnover Repossessed Vehicle

Summary:

The Debtor filed Chapter 13 on January 22, 2012, after Reliable Motors repossessed a vehicle four days earlier. The Debtor’s attorney both sent notice of the bankruptcy and was called Reliable that day. The Debtor went to Reliable car lot a few days later, seeking to regain possession of the vehicle, but Reliable refused to return the vehicle. On February 3, 2012, Reliable was again provided notice of the case, proof of insurance on the vehicle and evidence that the Debtor had made his first payment under the proposed plan. Reliable continued to refuse to return the vehicle, even up to the date of the Motion for Turnover and Sanctions on March 8, 2012.… Read More

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Bankr. E.D.N.C.: In re Boone – Reasonable Notice under the UCC of Disposition of Repossessed Vehicle

Summary:

World Omni repossessed the Debtors’ vehicle and on August 30, 2010, received notice of its intent to sell the vehicle at private sale on or after September 9, 2010. The letter also informed the Debtors of their right to regain the vehicle by payment of the outstanding loan balance before September 9, 2010. The vehicle was sold on September 16, 2010, and, after the Debtors filed bankruptcy nearly a year later, World Omni filed a Proof of Claim for the deficiency. The Debtors objected to the claim on the basis that they were not given reasonable notice prior to World Omni’s disposition of its collateral.… Read More

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