13
Jul
2020
Insurance Lapse: Lift Stay & Repossess Collateral
If collateral is not insured and the debtor files bankruptcy, proper procedure is to first lift the Bankruptcy Stay and then repossess collateral.
Here, the court held that a creditor is entitled to lifting the Bankruptcy automatic stay if the secured collateral is not insured. An automobile in question in this case was not insured.
The court held that the secured creditor could lift the stay and repossess the collateral if the debtor failed to provide insurance for the collateral since the creditor was not adequately protected. In re Floyd Barnes, Jr., 125 B.R. 484.
Author: Charles R. Harroun, Attorney at Law
This entry was posted
on Monday, July 13th, 2020 at 4:34 am and is filed under Bankruptcy, Secured Loans.
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