In re Charley's Automotive, Inc. (Ch. 7 Case No. 02-50855, Adv. No. 02-05155)

The bank financed the debtor's purchase of two vehicles. The bank filed a financing statement, but did not perfect its security interest on the certificates of title. The Court held that the trustee could avoid the bank's security interest in the vehicles under 11 U.S.C.A. section 544(a)(1). The Court held that the financing statement was not effective to perfect the bank's security interest.

Thursday, May 8, 2003