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Creditors failed to comply with Chapter 13 Plan – Mobile Home bankruptcy

In this South Carolina bankruptcy case the Chapter 13 plan provided that

“[s]ecured creditors paid the full secured claim provided for by this plan shall timely satisfy and liens in the manner required by applicable law or order of this Court.” Section 56-19-680 of the South Carolina Code provides the procedures for a lienholder to satisfy a security interest in a manufactured home. Specifically, this section provides that “[u]pon satisfaction of a security interest in a vehicle[, including manufactured homes with certificates of title,] for which the certificate of title is in possession of the lien holder, he shall, within ten days after demand, and in any event, within thirty days, execute a release of his security interest . . .”

After the Debtors received a Discharge, the mortgage creditor had still not sent the title. So the Debtor filed a Motion for Contempt seeking a release or satisfaction of the lien on its Manufactured Home and requested attorney’s fees and expenses.

The Court granted the Motion, ordering the mortgage creditor to release the lien on the Manufactured Home and deliver its title to Debtors and pay attorney’s fees and costs within ten (10) days of its entry. The Order provided that if the creditors failed to timely comply, a sanction of $100.00 per day would apply and continue to accrue until such time the creditor complied.

The creditor continued to fail to comply. The creditor then failed to appear at a Rule to Show Cause as to why they had not complied. All relief was granted to the Debtors and additional sanctions were ordered against the creditor.