In re Madden (Ch. 13 Case No. 15-31067, Adv. No. 16-03026)

The Chapter 13 debtor filed a motion for turn over of her car and for damages for violation of the automatic stay.  11 U.S.C. §§ 362, 542(a).  The car had been repossessed prepetition by a recovery company pursuant to its contract with the secured creditor.  Debtor sought to hold the secured creditor liable for the recovery company’s postpetition demand that the debtor sign a release of liability before returning the car.  The court held that the recovery company was an independent contractor and not an agent of the creditor and that the creditor was not liable for the acts of the recovery company.

Wednesday, March 7, 2018