Geneva Virginia Morgan

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
GENEVA VIRGINIA MORGAN,
Debtor.
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Case No. 08-00176
(Chapter 7)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION RE
FORD MOTOR’S MOTION FOR ORDER CONFIRMING TERMINATION OF STAY
Secured creditor Ford Motor Credit Company, LLC (“Ford
Motor”) filed a Motion for Entry of Order Confirming Termination
of Automatic Stay (Docket Entry (“DE”) No. 14) with respect to a
2002 Mercury Mountaineer motor vehicle because the debtor failed
to indicate within thirty days after filing her bankruptcy
petition (DE No. 1, filed March 17, 2008) whether she intended to
redeem the vehicle or reaffirm the debt secured by the vehicle,
as required by 11 U.S.C. § 521(a)(2).
The debtor, wishing to retain the vehicle, has opposed Ford
Motor’s motion (DE No. 19), asserting that she is current on the
monthly payments due to Ford Motor and that a reaffirmation
agreement with respect to the debt already exists between Ford
The Memorandum Decision below is hereby signed.
Dated: July 7, 2008.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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Motor and the co-signer for the debt, who has a bankruptcy case
pending in this court. 	(See In re Gennette Jones, Case No. 08-
00040, DE No. 21, Order Approving Motion for Reaffirmation
Agreement with Ford Motor Credit Company, LLC, entered June 18,
2008.) 	The debtor has also filed a Motion to Consent to
Unilateral Obligations on the Debtor for the Protection of the
Secured Creditor (DE No. 17), requesting that the court enter an
order imposing, with the debtor’s consent, certain unilateral
obligations on the debtor, including, for example, agreeing to be
liable for any loss arising from failure to maintain insurance on
the vehicle. 	An order has been signed (copy attached) granting
the debtor’s motion and imposing the specified obligations on the
debtor. 	Those obligations are apparently designed to protect
Ford Motor were it to delay repossessing the car until there is a
monetary default.
Nevertheless, the debtor is not entitled to a denial of Ford
Motor’s motion. 	The debtor’s motion did not seek a full
reaffirmation of the debt. 	The failure to reaffirm the debt
requires that the stay be terminated pursuant to 11 U.S.C. §
362(h)(1).
The automatic stay having been lifted, that does not
necessarily entitle Ford Motor to proceed with repossession.
Ford Motor is entitled to proceed pursuant to its rights under
nonbankruptcy law, and I need not decide whether those rights
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3	O:\TEEL\Alex\Orders\Lift Stays\Order Granting Ford Motion's Motion for Relief from Stay (Geneva Morgan) v2.wpd
include repossessing the car if the debtor is current on the
debt. 	See In re Rowe, 342 B.R. 341 (Bankr. D. Kan. 2006). 	In
light of the debtor’s being current on the debt and having agreed
to the entry of the order imposing unilateral obligations on her,
it may be in Ford Motor’s interests to permit her to retain the
vehicle so long as she remains current on the debt.
An order follows granting Ford Motor’s motion.
[Signed and dated above.]
Copies to: Debtor; Kevin D. Judd, Esq., counsel for debtor;
Michael J. Klima, Esq., counsel for Ford Motor Credit Company,
LLC; Chapter 7 Trustee.
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UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
IN RE: GENEVA VIRGINIA MORGAN :
:
: Case No. 08-00176
:
Debtor. : Chapter 7
ORDER IMPOSING, WITH THE
DEBTOR’S CONSENT, UNILATERAL OBLIGATIONS
ON THE DEBTOR FOR THE PROTECTION OF THE SECURED CREDITOR
The debtor has filed a Motion to Consent to Unilateral Obligations for the Protection of
Secured Creditor, Ford Motor Credit Company, LLC (“the creditor”), which calls for payments of
$635.55, it is
ORDERED that the automatic stay of 11 U.S.C. sec. 362(a) and the forthcoming discharge
injunction of 11 U.S.C. sec. 524(a)(2) which will arise upon the debtor’s receiving a discharge are
clarified or modified as follows:
(1) the debtor shall be obligated to pay for any loss arising from the failure to insure the car
or from any interference with (or other failure to comply with the debtor’s obligations relating to
The order below is hereby signed.
Signed: July 07, 2008.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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facilitating) the creditor’s right to repossess the car, and the creditor’s pursuit of a claim in that
regard will not constitute a violation of the automatic stay or the discharge injunction;
(2) so long as it has not repossessed and sold the motor vehicle, the creditor (and its
successors and assigns, and any entity on whose behalf it has acted) may send notices or make
statements to the debtor:
(i) regarding payments that are due or are to come due, which may include demands
or payment,
(ii) regarding the debtor’s obligation to keep the car insured in favor of the lienor as
required by the parties’ contract, or
(iii) embodying threats of repossession (or threats of sale after repossession) if a
default has arisen or should arise under the parties’ contract, and such notices or statements shall not
be construed as an act to collect the debt as a personal liability of the debtor, but this shall not
subject the debtor to any personal liability for the debt, and
(3) the creditor (and its successors and assigns, and any entity on whose behalf it has acted)
may accept payments received pursuant to such notices. It is further
ORDERED that the debtor is advised that by reason of the receipt of a discharge, she will not
be personally obligated to make monthly payments that come due as owed to the creditor, but that
she may elect voluntarily to make such payments if she wishes to avoid a monetary default pursuant
to which the creditor might opt to enforce its lien against her vehicle. It is further
ORDERED that actions taken by the secured creditor pursuant to the foregoing provisions
will not violate the debtor’s discharge or the automatic stay.
[Signed and dated above.]
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Copies to Debtor; debtor’s attorney; chapter 7 trustee; and
Michael J. Klima, Jr., Esq.
8600 LaSalle Road, Suite 200
Towson, MD 21286-2025
Ford Motor Credit
P.O. Box 94380
Palatine, IL 60094-4380
I consent to this order:
/s/ Geneva Virginia Morgan_____
Geneva Virginia Morgan
End of Order
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