Bankr. No.:
11-50328
Adv. No.:
12-5006
Chapter:
7
Date of Decision:
November 15, 2012
Issue:
On Trustee-Plaintiff's motion for summary judgment, whether Defendants, who were Debtor's parents, had a valid lien on a vehicle where no security agreement existed separate from a lien notation on the vehicle's certificate of title?
Ruling:
The Court concluded Defendants did not have a valid lien on the subject vehicle, and the motion for summary judgment was granted. Following its earlier decision in Allred v. Buttke (In re Buttke), Bankr. No. 10-10263, Adv. No. 11-1015, 2012 WL 529241, at *3 (Bankr. D.S.D. Feb. 17, 2012), the Court held state law requires a separate security agreement to have been made. Since no such agreement existed, Defendants did not have a valid lien despite the lien notation on the certificate of title.
Full Bankruptcy Court Decision:
