Ronald Eugene Gray and Frances Chestnut Gray

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
FAYETTEVILLE DIVISION
IN RE:
RONALD EUGENE GRAY
FRANCES CHESTNUT GRAY
DEBTORS
CASE NO.
05-06012-8-ATS
ORDER ALLOWING MOTION FOR TURNOVER
The matter before the court is the debtors’ motion for turnover.
A hearing took place in Raleigh, North Carolina on September 22, 2005.
Ronald Eugene Gray and Frances Chestnut Gray filed a petition for
relief under chapter 13 of the Bankruptcy Code on August 5, 2005. The
debtors own a 1997 Buick LeSabre that they took to The Paint Shop for
repairs prior to filing the petition. The Paint Shop is asserting a
mechanic’s lien on the vehicle for work performed, and it refuses to
turn over the vehicle to the Grays. The debtors are willing to provide
The Paint Shop with a secured claim to be paid inside the plan for the
full amount of the debt owed, but The Paint Shop is not equipped to
accept installment payments and does not wish to be paid over time. To
complicate matters, The Paint Shop had completed the necessary repairs
on or about the petition date, but when it learned that it would not be
paid in full immediately, it removed the parts it had installed and
returned them to its supplier.
Case 05-06012-8-SWH Doc 20 Filed 09/23/05 Entered 09/23/05 15:19:59 Page 1 of 2

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The motion for turnover will be allowed, conditioned upon the
debtors making their first payment to the chapter 13 trustee. Because
The Paint Shop removed the parts on August 13, after the automatic stay
was in place, it will be required to restore the vehicle to the
condition it was in on the petition date. The court understands that
all of the work ordered, with the exception of a front-end alignment,
was complete as of August 5, 2005. The Paint Shop will have a secured
claim in the amount of $5,500, and it will be entitled to a lien on the
vehicle that may be recorded with the North Carolina Division of Motor
Vehicles.
Based on the foregoing, THE PAINT SHOP IS DIRECTED TO TURN OVER
THE 1997 BUICK LESABRE TO THE DEBTORS WITHIN 10 DAYS OF THE DATE THE
DEBTORS MAKE THEIR FIRST PAYMENT TO THE CHAPTER 13 TRUSTEE. The
vehicle is to be restored to the condition it was in as of August 5,
2005.
SO ORDERED.
DATED: September 23, 2005
Case 05-06012-8-SWH Doc 20 Filed 09/23/05 Entered 09/23/05 15:19:59 Page 2 of 2