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Bankr. EDNC: Gressinger- Turnover by Motion‏

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By Ed Boltz, 7 November, 2011
The Debtor brought a Motion for Turnover of a boat used to haul construction material, that had been seized by the North Carolina Department of Revenue. The NCDOR objected on procedural grounds that an Adversary Proceeding was required. The Bankruptcy Court rejected this, holding that the "relationship between §§363, 542(a), and 1303 gives chapter 13 debtors the right to demand turnover" since, pursuant to 11 U.S.C. §542(a) "an entity, other than a custodian in possession, custody, or control, during the case, of property that the trustee may use, sell, or lease under section 363 of this title, or that the debtor may exempt under section 522 of this title, shall deliver to the trustee, and account for, such property or the value of such property, unless such property is of inconsequential value or benefit to the estate." Gressinger Case Bankruptcy Court Eastern District NC.PDF

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