Bought boat, paid for it, dealer files for bankruptcy

[Santa]

Oh, this cannot be happening! I seriously need some advise.

I found this great deal on a new 2008 model boat at a dealer. It is in another area very far from where I live. I do my homework, check that the dealer is in good standing by contacting the boat manufactuer and then I decided to buy it.

I pay the boat. The dealer sends me all the original paperwork including the (original) sales contract written "Paid" on it, and the boat and trailer's certificate of origin. Great!

All that's left is for me to arrange for pick up of the boat. I talked to the dealer several times meanwhile for a few minor things. Then this week, no-one ever answers the phone at the dealer.

Long story short, I do further research and I find out that the owners of the dealer have just filed for chapter 11.

Now, I'm trying to reassure Myself that all will be OK since I have all the paperwork, proof of payment etc. Seems to me that it's only a matter of going there to pick up my boat. But something tells me it might not go so well.

Any input please??

 

[Gary H NC]

Re: Bought boat, paid for it, dealer files for bankruptcy

Ouch! That sucks!
I would get there fast!
You may want to consult with an Attorney ASAP!

Where is this dealer located?

Best of luck!

Welcome to Iboats!

 

[Stachi]

Re: Bought boat, paid for it, dealer files for bankruptcy

Ouch! That sucks!
I would get there fast!
You may want to consult with an Attorney ASAP!

Where is this dealer located?

Best of luck!

Welcome to Iboats!

I agree !

 

[solar7647]

Re: Bought boat, paid for it, dealer files for bankruptcy

Ouch! That sucks!
I would get there fast!
You may want to consult with an Attorney ASAP!

Where is this dealer located?

Best of luck!

Welcome to Iboats!

Second that and contact the local sherif when you get there!

 

[Gary H NC]

Re: Bought boat, paid for it, dealer files for bankruptcy

I know of a couple dealers local to me that just went under was why i asked where.

 

[Santa]

Re: Bought boat, paid for it, dealer files for bankruptcy

Dealer is in Athens, Alabama.

 

[Nandy]

Re: Bought boat, paid for it, dealer files for bankruptcy

Why are you getting ahead of you. Go and pick up your boat, if you have any problems that is the time to worry about it...

 

[roozter2550]

Re: Bought boat, paid for it, dealer files for bankruptcy

I'd contact the local sheriff's office before going to pick up the boat.

Explain to them about the purchase and all your paperwork in hand and that you want to pick it up. They may be able to help but there is a good chance that they won't.

If the boat is tied up in the bankrupcy, you may have to go through the court or trustee in charge of the case to get it.

Since bankruptcy is a public action in the court, contact the clerk of courts in the city/county where the dealer is and get the case number and any information such as trustee and judge on the case. You may have to send copies of your paperwork to them to prove ownership.
You should actually be able to get a full copy of the bankruptcy filling since it is public record, (might have to pay a small fee in clerk's charges).

Hopefully, you won't get pushed into the list, (matrix), of creditors in the case. If so, you may get very little if any of your money back and will be waiting for a while.

Sorry for the bad news and I could be completely wrong...just going by what I've seen in personal bankruptcy cases, chapter 7 and chapter 13. Might be different in a corporate case.

Good luck and keep us posted.

 

[Woodnaut]

Re: Bought boat, paid for it, dealer files for bankruptcy

I know practically nothing about the legality of these affairs, but it seems to me that if the paperwork was completed and the purchase was funded, then you are the legal owner of the boat and it is not the property of the Dealer. It seems as if it was "just being stored at their location until you picked it up". Just as if your boat was in their shop for repairs - it's your boat, not the Dealers. I really hope this has a happy ending.

 

[Santa]

Re: Bought boat, paid for it, dealer files for bankruptcy

Yes, as Woodnaut put it, that was the understanding with the dealer. The boat is mine and I actually had to get my own insurance on it in case something happened while there. In one of the last (email) discussions with one of their employees, they were about to do a shrinkwrap job on it to prepare it for transport.

It's just frustrating and scary when no-one is answering the phone there...

 

[JimMH]

Re: Bought boat, paid for it, dealer files for bankruptcy

Get yourself on the Road pronto. I deal with Bankruptcy a lot, I'm a Banker. If you have the certificate of origins for both the boat and trailer you should be Ok. That being said You need to contact the dealer and arrange pickup. Filing Bankruptcy doesn't necessarily mean that they are out of business. It is a way to deal with your creditors until all can be sorted out. Secured Creditors get paid from assets and the unsecured get what is left over and usually that means nothing. The Trustee cannot sell that boat or trailer without the cert of origins the attorney handling the case will be listed on the filing with the Clerk of Court for that county. Contact him and let him know what your problem is if the dealership is not open. Remember, never pay more than a token deposit until the goods are delivered in hand!

 

[2ndtry]

Re: Bought boat, paid for it, dealer files for bankruptcy

I am so not a lawyer...

That boat is yours. Unfortunately, you are going to have to prove its yours to whomever is watching the gate. Go get it soon, bring ALL the paperwork and a trailer hitch. Better to convince the security guard now than the judge in a couple months.

 

[kenmyfam]

Re: Bought boat, paid for it, dealer files for bankruptcy

Reality says it is yours if it is paid for and you have the paperwork to prove it.
Go get your boat.
I hope everything works out for you.

 

[Summer Fun]

Re: Bought boat, paid for it, dealer files for bankruptcy

How did you pay for it by CC / Check ??. Can you stop payment !!!.

 

[Sikiguya]

Re: Bought boat, paid for it, dealer files for bankruptcy

Chapter 7 is liquidation. Bad news.

Chapter 11 is simply protection from creditor while it reorganized. It isn't comforting but I would make arrangement to pick it up as soon as possible regardless.

 

[superpop]

Re: Bought boat, paid for it, dealer files for bankruptcy

I would be in my truck right now driving to the dealer to pick up my property. Do not wait even a day.

 

[security6]

Re: Bought boat, paid for it, dealer files for bankruptcy

Wow. Lots of advice given from people who have no clue. I don't think any of it would make your situation worse, but contacting the sheriff seems kind of silly.

Chapter 11 bankruptcy does not mean the place is out of business. Read this:

The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)

Quote taken from http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html

Chapter 11 is the same bankruptcy that most of the airlines, such as Delta, went through a few years ago. They keep operating, but are allowed to restructure and maybe writeoff some debts.

With that being said, head on over to the dealer and talk to someone there. It will calm your nerves. However, there is no need to call the sheriff or go to court.

 

[Nautical Nate]

Re: Bought boat, paid for it, dealer files for bankruptcy

I agree, at least try to pick up your Boat, seems like you actually own the boat.

 

[willamettejeff]

Re: Bought boat, paid for it, dealer files for bankruptcy

Actually, it may not be your boat as unless the manufacturer or the financial institution that financed the boat to the dealer was paid for it by the dealer then they still hold a lean against it. Just something I've read about that has happened to consumers when car & RV dealerships have filed for bankruptcy in the past.

-- Jeff

 

[Rwebber77]

Re: Bought boat, paid for it, dealer files for bankruptcy

I wouldn't sweat it too much until you have a reason to. Because it's far away, drive there and attempt to pick up your boat during business hours and if no one is there to honor your paperwork then I would panic and find someone local who can help you get YOUR boat off of their lot.

As stated many times, filing for bankruptcy doesn't mean their doors are locked and windows boarded up. Look at K-Mart, they have filed for bankruptcy (or restructuring as they call it) more than once and the doors are still wide open to the public.