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In re DeForest (Case No. 05-71325) 3/31/2006

The Chapter 7 trustee filed a motion for turnover of a vehicle to the bankruptcy estate pursuant to 11 U.S.C. §§ 521(a)(4), 542(a).  Although the certificate of title for the vehicle showing a lien on the face of the certificate serves as notice of the lien pursuant to Va. Code § 46.2-638, it does not prove the existence of that lien.  The showing of the lien on the certificate of title only provides notice that a lien may exist and invites inquiry by the fact-finder as to its validity.  Accordingly, the Court held that the vehicle is property of the estate until proven otherwise and must be turned over to the trustee.

Date: 
Friday, March 31, 2006
Category: 
Property of the Estate
Turnover
Chapter: 
7