## Facts

- Derryl Franklin Rozier bought a vehicle in Georgia financed by Motors Acceptance Corporation (MAC) under an installment contract.
- After Rozier defaulted, MAC repossessed the vehicle on August 8, 2002.
- Rozier filed a Chapter 13 petition on August 12, 2002 and demanded return of the vehicle.
- MAC refused to return the vehicle after the bankruptcy filing.
- The bankruptcy court held MAC in willful contempt for violating the automatic stay, finding the vehicle was property of the estate.
- The district court affirmed, concluding that under Georgia law the debtor retained legal title and redemption rights after repossession.
- On appeal, the Eleventh Circuit certified to the Georgia Supreme Court whether repossession transfers legal title or an ownership interest conferring a right of possession.
- The Georgia Supreme Court answered that ownership remains with the debtor until the creditor disposes of the collateral or accepts it in satisfaction of the debt under Georgia UCC procedures.

## Issues

1. Under Georgia law, does repossession of a vehicle after default transfer legal title or an ownership interest giving the creditor a right to possess against the debtor, or does ownership remain with the debtor until UCC disposition/retention procedures occur?
2. If ownership remains with the debtor at filing, is a prepetition repossessed vehicle “property of the estate” under 11 U.S.C. § 541(a)(1), requiring turnover and protection by the automatic stay?
3. Did MAC’s postpetition refusal to return the repossessed vehicle support a contempt finding for violating the automatic stay?

## Decision

- The Eleventh Circuit affirmed the district court’s judgment and the bankruptcy court’s contempt order.
- Applying the Georgia Supreme Court’s answer, the court held that repossession alone does not transfer ownership to the secured creditor under Georgia law.
- Because Rozier retained ownership interests when he filed Chapter 13, the vehicle became property of the bankruptcy estate under § 541(a)(1).
- MAC’s refusal to return the vehicle after the petition date violated the automatic stay and supported the contempt finding.

## Legal Principles

- Property of the bankruptcy estate under 11 U.S.C. § 541(a)(1) includes all legal and equitable interests the debtor holds at the commencement of the case, as defined by applicable state property law.
- Turnover under 11 U.S.C. § 542 applies to property that is property of the estate and that the estate may use, sell, or lease.
- Under Georgia’s UCC Article 9, a secured party’s repossession of collateral does not itself transfer ownership; ownership remains with the debtor until the creditor completes UCC-compliant disposition procedures or accepts the collateral in satisfaction of the obligation under retention procedures.
- A creditor’s postpetition retention of estate property after demand can violate the automatic stay and warrant contempt sanctions when the conduct is found willful.

## Conclusion

Because Georgia law leaves ownership of a repossessed vehicle with the debtor until the creditor completes statutory disposition or retention steps, Rozier’s vehicle was property of the Chapter 13 estate, and MAC’s refusal to return it after the bankruptcy filing violated the automatic stay and justified contempt.


Motors Acceptance Corp. v. Rozier (In re Rozier), 376 F.3d 1323 (11th Cir. 2004)