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. The bankruptcy court, however, found that World Omni’s notice to the debtors was sufficient as it was an almost a verbatim copy of the “safe harbor” provision codified in N.C.G.S. § § 25-9-614.1. For a copy of the opinion, please see: Boone - Reasonable Notice under the UCC of Disposition of Repossessed Vehicle.pdf