Gess v. Randolph Brooks Credit Union, No. 14-6045 (8th Cir. 2015)
Annotate this CaseDebtors filed a Chapter 7 bankruptcy petition. The Credit Union sought Relief from Stay regarding a 2008 Chrysler van, which had been owned by Debtor’s father (Neale), but was in the Debtors’ possession. The van’s Certificate of Title lists Neale as the sole owner, but Neale had died and Debtor was the sole designee under his will, which was submitted to the court. The Bankruptcy Court found that Debtor had at least an equitable interest in the van, which interest was property of the estate, and granted the Motion. The Eighth Circuit affirmed, rejecting arguments that the Credit Union did not have a perfected security interest in the van, or that the loan could not be enforced against Debtors. The interest was evidenced by a Security Agreement signed by Neale; the lien was noted on the Certificate of Title, which issued in Texas. Texas law provides that, except for vehicles held as inventory, a person may perfect a security interest in a motor vehicle by recording the security interest on the certificate of title. The fact that Neale is now deceased, and that the Debtors may not be personally liable on the loan, does not affect the Credit Union’s security interest in the van.
Court Description: Bankruptcy Appellate Panel. Order granting Credit Union relief from the automatic stay with respect to debtors' vehicle affirmed as the Credit Union had a perfected security interest in the van and established that its interest was not adequately affected. [ March 17, 2015
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