[Vtr-tac] Dealer Closures and Bankruptcies, Additional Information

Electronic Distribution of VTR Information to Texas Counties vtr-tac at dot.state.tx.us
Fri Jan 16 14:51:09 CST 2009


Please review and distribute as appropriate.

Bill Heard Chevrolet and Landmark Chevrolet bankruptcies:
*	On December 16, 2008, we sent you a ListServ describing how to
process titles, registrations, and taxes for *Dealer
Bankruptcy/Non-Bankruptcy Closures*.  Since September the only dealers
that have closed and filed bankruptcy that TxDOT is aware of are Bill
Heard Chevrolet (Sugarland) and Landmark Chevrolet (Houston).  Those
bankruptcy procedures are still in effect and apply only to Bill Heard
Chevrolet and Landmark Chevrolet vehicles at this time.  

*	The court has granted GMAC a court order to assign and transfer
any documents of title for motor vehicles as needed in order to affect
the sale or disposition of the motor vehicles identified in a
twenty-five page supplemental list of vehicles from Landmark Chevrolet.
That court order and Exhibit are attached.  

*	BMW Alphera Financial Services also received a court order that
allows them to assign and transfer title documents for motor vehicles
identified in the Exhibit.  The court order and Exhibit are attached.

*	If a customer is not listed in the court order they must contact
the bankruptcy attorney (see contact information below) and request to
be added to the order, even if they have all the required transfer
documents.  This will protect the vehicle from being included in any
future distribution of the dealership assets by the court and will allow
waiver for the customer of any fees previously paid.

	Derek F. Meek
	Attorney
	Burr & Forman LLP

	Direct: (205) 458-5471
	Main: (205) 251-3000
	Fax: (205) 244-5679
	dmeek at burr.com 

New questions and concerns have been expressed since the last
ListServ:
*	Q. Can  new vehicles from a closed/bankrupt dealer be sold at
auction to anyone at the auction? 
A. The dealer purchasing the vehicles at auction must be a franchise
dealer for the same line of vehicles if the vehicles are being sold on
an MCO.  Otherwise, the dealer would be required to apply for title in
their name and pay all associated fees/taxes.

*	Q. What happens when there is a change of Lienholder between the
date of the sales contract and the date of title application?  
A. Either request a release of lien for one of the lienholders or show
as 1st and 2nd liens on the title application.

Questions concerning acceptable title transfer documents should be
submitted to Monica Blackwell at mblackw at dot.state.tx.us.  If you have
any other questions or need any additional information please contact
your local Vehicle Titles and Registration Division Regional Office.

Thanks,

--Rebecca

If you have any comments or suggestions concerning this VTR
communication process, please contact your local VTR Regional Office.

If you would like to see previous postings from the "VTR Electronic
Archives," please visit
http://extlists.dot.state.tx.us/pipermail/vtr-tac/ .

----------------------------------------
Rebecca Davio
Director
Vehicle Titles and Registration Division, TxDOT
Telephone: (512) 465-7570
FAX: (512) 467-5909
Email: rdavio at dot.state.tx.us 
 
Forget waiting in line, renew your registration online! Put Texas In
Your Corner.  Go to www.txdot.gov  for more info.
 
 

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