Thompson v. General Motors Acceptance Corp., LLC
United States Court of Appeals for the Seventh Circuit
566 F.3d 699 (2009)
Theodore Thompson (plaintiff) defaulted on his installment contract for a 2003 Chevy Impala, and General Motors Acceptance Corporation (GMAC) (defendant) repossessed it; days later Thompson filed for Chapter 13 bankruptcy and asked GMAC to return the car so he could commute, but GMAC refused because Thompson hadn't proven he could adequately protect its secured interest. Thompson moved for sanctions against GMAC in bankruptcy court for violating the automatic stay by not returning the vehicle; the bankruptcy court denied the motion, and Thompson appealed directly to the Seventh Circuit.
Whether, when a debtor files for Chapter 13 bankruptcy, a creditor must return repossessed collateral and file a motion in the bankruptcy court if the creditor wishes to challenge whether the debtor has provided adequate protection of the creditor's interest.