Chapter 7 who owns the property now?

What is the name of your state? Ohio
After papers were filed and notices sent to creditors, a collection agency attemtped to negotiate the sale of a ATV for half of the price owed on behalf of the creditor. Under law, he had no right to contact me knowing it was now in the hands of the court. I made my appearance along with counsel, no creditors came forward to dispute or ask for this property to be surrendered, presented no documentation to the trustee or legal counsel that a sale had transpired after filing and prior to my court appearance to discharge debts. I was lead to believe that the trustee having abandoned any interest in this matter, the property was undisputed and therefore is considered mine. Now comes forward the gentleman who paid the collector and demands the 4-wheeler be delivered. The title remains in my name and a letter was sent to me stating the debt had been satisfied, that the title would be released within a few weeks. I have recieved NO documentation stating new ownership, nor have I been asked to surrender said vehicle. Who owns it ? The buyer is demanding the title or wants me to re-imburse him the money he sent to the collector. 30 days has passed since my appearance and I have heard nothing from the creditor regarding this matter as to ownership. Please advise

[AttorneyOney]

I'm guessing that all these facts arose in the context of your own ch. 7 case, or else you wouldn't have posted them here. But I don't understand what happened. Can you provide a chronology of events, making clear who is involved at each step? Give them fake names if it would aid clarity.

Ohio ..Motion filed 4-2-4. Hearing 5-13-04. ATV sold 5-06-04 In brief, the collection agent made arrangements to sell this vehicle before the hearing date and after a motion for Chapter 7 had been filed. Neither my attorney nor the trustee handling the case had no prior knowledge of such a transaction, therefore the trustee abadoned any interest in the ATV since no one notified or appeared at the hearing asking that I surrender it. Although I did not reaffirm this debt, I was to understand that such a transaction was fraudulent. Was the collection agent within his rights to make available, privileged information about this account without permission from myself or counsel? The ATV is in my possession pending the title being released, at which time the supposide owner demands delivery or the dollar amount he paid for the vehicle. The creditor has not sent any written notice stating a request to transfer title. I was unaware that a creditor could negotiate a deal with anyone regarding this debt while intrusted in the courts. I'm not sure if I've made myself clear as to what your asking me. I have no intentions of surrendering this property and wonder If anyone has recourse on my not doing so.

[AttorneyOney]

I think you're saying that you filed a ch. 7 PETITION on 4/2/04 and had a section 341 MEETING OF CREDITORS on 5/13. It's unremarkable that no creditors appeared at a 341 meeting -- they almost never do -- and has no bearing on anyone's rights.

A creditor may not take any action to enforce a claim against a debtor in violation of the automatic bankruptcy stay. Actions in violation of the stay are void. The rights of a bona fide purchaser for value and without notice of the bankruptcy stay might be paramount. If I understand you correctly that you have retained possession of this ATV throughout, it might be difficult for the buyer to claim that exalted status. Only a local attorney could give you good advice, and only after patient, one-on-one questioning to establish all of the facts.

A creditor who knowingly violates the stay can be liable for damages, including punitive damages and attorney's fees, under section 362(h) of the Bankruptcy Code. Calling collection actions that violate the stay "fraud" rather overstates the case, since fraud requires detrimental reliance on a material misstatement.