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IN RE HENRY

United States Bankruptcy Court, C.D. Illinois.
Oct 15, 2008
OPINION

THOMAS PERKINS, Bankruptcy Judge

This matter is before the Court on the Debtors' Motion to Expedite Hearing on a separate Motion to Use Cash Collateral concerning the destruction of a motorcycle that secures the secured claim of Redbrand Credit Union. The Debtors wish to use the insurance proceeds to purchase a replacement motorcycle. The Debtors request a hearing date within 6 days since the seller of the replacement motorcycle will only hold it for seven days.

This Court is of the view that a minimum of fifteen days notice should be given to a secured creditor of a motion to use cash collateral. If a situation arises where the Debtors need to act sooner, the Debtors' attorney should negotiate an agreed order with the affected creditor — here, Redbrand — or at least obtain the creditor's consent to an expedited hearing. Neither of those options has occurred here, so the Motion to Expedite should be denied.

In this Court's view, neither a debtor's failure to timely advise his attorney of the need to obtain financing nor a vehicle seller's insistence on a short "hold" period, warrants depriving the holder of a secured claim whose collateral is at stake of minimum notice of a hearing and opportunity to object.

A separate Order will be entered. Notice Recipients District/Off: 0753-1 User: ckey Date Created: 10/15/2008 Case: 07-81444 Form ID: pdf012 Total: 4 Recipients of Notice of Electronic Filing: ust U.S. Trustee USTPRegion10.PE.ECF@usdoj.gov tr Michael D Clark mclark13@mtco.com aty Richard N Gentry, Jr rgentry@vltslaw.com aty Spencer Lee Daniels danielslaw@sbcglobal.net TOTAL: 4