Re: Bought boat, paid for it, dealer files for bankruptcy
There is some good info here and some bad info. A couple of things that caught my eye that need some clarification, are that Chapter 11 (Reorganization) is not the same as Chapter 7 (Liquidation) and the OP would not be a creditor, so he would not be treated in the same manner.
Under Chapter 11, the entire point of the filing is to try to keep the entity open and operating, while restructuring. That means that a sales business would be expected to keep selling things. Its also worth mentioning, that bankruptcy courts are Federal courts, not local courts. The Judges handle cases in defined jurisdictions (Eastern District of Louisiana, for example) and they are very independant in their thinking. They also don't do much of anything very quickly. A Chapter 11 case can go on for years, if the company really has any hope of holding things together. In short, if the business can keep generating revenue, which will pay the creditors, the judge is not likely to shut the business down, by holding up transactions.
Given the complexities of "floor planned" mechandise, however, my inclination would have been to get my hands on the boat as soon as possible and get it home. Doing so, makes it harder for others to lay claim to the asset. In short, if "they" don't have it, "they" have to go through the court to get it. When the buyer can show proof of payment, the sales conract and the Certificate of Origin on both the boat and trailer, the Sheriff in his jusrisdiction isn't going help the finance company, by trying to take the boat back. From that Sheriff's perspective, the boat is legally in the buyer's possession and he will walk away from the problem.
By the description provided, it sounds like the OP did just that. He didn't sit around trying to figure out how to get to a location that is 20 hours away. Instead, he found a local to help and "took possession" as quickly as he possibly could, under the circumstances. If I were him, the next thing that I would do, is to immediately register and obtain titles on both items, should both be eligible for a title.
What he also did, was to make use of the window that exists from the time that a company enters Chapter 11 and when the creditors react to it. My guess is that the OP had his shiny new boat in his driveway, before the dealer's finance company even knew of the Chaper 11 filing.
I also would not have gone to the local Sheriff in Alabama. That would have only complicated matters and would probably have screwed up the "grab it and run" strategy. This is true, not because anyone did anything wrong, but because police departments often react to things by taking the easiest route possible. They also don't know many things about the law, beyond what they deal with on a day to day basis. I can very much see some local department, deciding that the easiest thing to do, would be to keep the boat at the dealership, until someone from the DA's office told them otherwise.
I'm glad that the OP got his boat and was able to remove a potential headache of major proportions. Now its time for him to go boating!
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