Dallas Chapter 13 case. If car repossessed pre-petition, creditor has
to turnover, can’t refuse to turnover on grounds of lack of adequate
protection. Creditor should turnover and then if doesn’t have adequate
protection, move for relief from stay. Seventh says that they are now
in line with Sixth Eight Ninth and Tenth Circuits. it has always been the custom here that the vehicle is released once the debtor provides proof of full coverage insurance. This opinion seems to say that the creditor should file an emergency motion after turnover to request insurance. We also have a local rule requiring insurance, so that may be the reason here. I had a case a few years ago where I was representing a used car lot and the debtor argued a stay violation solely on the basis of the creditor requiring insurance. The judge disagreed, but did not actually enter an order on the insurance issue either way. If you get it corrected before the 341 Notice is generated, you might be able to save all the noticing.
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