Mr. Hutton’s vehicles were seized in a levy by the Onslow County Sheriff’s Department in executing on a judgment obtained by Principis. After filing bankruptcy, Mr. Hutton sought turnover of the vehicle and asserted that the possessory lien held by Principii had not been perfected by recordation with the North Carolina DMV.
In narrowly construing and distinguishing several decisions from the North Carolina Supreme Court and Court of Appeals, the bankruptcy court rejected the argument by Principis that recordation is required to perfect a lien under N.C.G.S. § 20-58 only if there is a “security interest” as defined in N.C.G.S.… Read More
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
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