Case Law
Decision Date
14
Jun 2019
Name
IN RE Jessica Jambreda RIDDLESPRIGGER, Debtor.
Attorney(s)
J. Clarke Walker, Carmichael Law Group, Opelika, AL, for Debtor., William R. Sawyer, United States Bankruptcy Judge This matter came before the Court for a telephonic hearing on February 12, 2019, on Trustee's Objection to the Secured Status of Exeter Finance's claim (Doc. 49). Exeter was present by counsel William C. Poole, and the Trustee was present by counsel Audrey Willis. The parties agree that there are no facts in dispute and that this is an issue of law. The Court has considered the briefs filed by the parties. (Docs. 55, 61). For the following reasons, the Court SUSTAINS Trustee's objection and holds that Exeter Finance's claim will be allowed as unsecured., Jessica Riddlesprigger (Debtor) filed a petition in bankruptcy pursuant to Chapter 13 of the Bankruptcy Code on March 20, 2018. Exeter Finance filed a Proof of Claim on June 7, 2018. (Claim No. 12). Exeter Finance claims that it is owed $22,129.24 as of the date of the petition, and that it is secured by a "Contract and/or Title." Both the instructions on the Proof of Claim and Bankruptcy Rule 3001(d) call for the claimant to file documents showing that its security interest has been perfected., Notwithstanding the fact that Exeter Finance's Proof of Claim was, on its face, defective, the Trustee researched the matter and objected to Exeter Finance's claim on the grounds that its security interest was not perfected as of the date of the petition. (Doc. 49). Debtor purchased a 2017 Fiat 500X automobile from "Dothan Chrysler Dodge, Inc." under a contract dated February 26, 2018. Exeter Finance submitted an application for a Certificate of Title to the Alabama Department of Revenue on March 15, 2018. The seller of the vehicle was listed as "Dothan Chrysler Dodge Jeep Ram" on the application, but the Certificate of Origin, submitted with the application, indicated that the Seller was "Dothan Chrysler Dodge Jeep Ram Fiat ." The Department of Revenue rejected the application because of the discrepancies in the papers. Exeter Finance resubmitted the application May 18, 2018, and the Department of Revenue received the additional documentation on May 24, 2018. The Department of Revenue ultimately approved the resubmitted application and issued a Certificate of Title on June 22, 2018, fifteen days after Debtor filed her petition in bankruptcy.
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