Carl A. Eason, Esquire

Counsel for Ally

Wolcott Rivers Gates

200 Bendix Road, Suite 300

Virginia Beach, Virginia 23452

bankruptcy@wolriv.com

(757) 497-6633

VSB# 18636

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

In re: )

)

MCDONALD SUTTON ) Case No. 20-34504-KLP

JENNIFER GILBERT SUTTON ) Chapter 13 

)

Debtors )

_________________________________________________________________

MCDONALD SUTTON, ET AL )

)

Movants, )

)

ALLY FINANCIAL, INC. )

c/o CT CORPORATION SYSTEM, R/A )

4701 Cox Rd., Suite 285 )

Glen Allen, VA 23060-6808 )

)

Respondent. )

RESPONSE TO MOTION FOR TURNOVER OF PROPERTY OF THE ESTATE AND 

FOR RESPONDENT TO SHOW CAUSE WHY IT SHOULD NOT BE HELD IN 

CONTEMPT FOR VIOLATION OF THE AUTOMATIC STAY

NOW COMES Ally Bank (incorrectly listed as Ally Financial, Inc.) ("Ally") 1, by 

counsel, and for its Response to Debtors’ Motion to Turnover property of the Estate and for 

Respondent to Show Cause why it should not be held in Contempt for Violation of the Automatic 

Stay (“Motion”), states as follows:

1. As to paragraph 1 of said Motion, Ally admits that Ally (not Ally Financial Inc.) 

1 Ally Bank is the holder of the Retail Sale Installment Contract. Ally Bank designated Ally Financial Inc. to act as 

its collateral agent and hold a security interest in the Vehicle and appear as lienholder of record on the Vehicle’s 

Certificate of Title for Ally Bank’s benefit.

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Document Page 1 of 4
Carl A. Eason, Esquire

Counsel for Ally

Wolcott Rivers Gates

200 Bendix Road, Suite 300

Virginia Beach, Virginia 23452

bankruptcy@wolriv.com

(757) 497-6633

VSB# 18636

repossessed the 2017 Ford Expedition (the “Vehicle”) via a third party repossession company. Ally

further admits the allegations contained in paragraphs 1 and 2 of said Motion. 

2. On the date of filing, November 10, 2020, Ally received notice of filing and 

immediately placed a hold on transport of the Vehicle (previously repossessed on October 28, 

2020) to an auction facility out of state. The third party company which repossessed the Vehicle 

was Premier Collateral Recovery Services. Ally authorized release of the Vehicle to Debtors on 

November 10, 2020, the date of filing, and advice of same was given to Rebecca at the office of 

Debtors’ counsel. 

3. Unbeknownst to Ally, the Vehicle had already been turned over to a third party 

transport company and was in route to Bel Air Auto Auction in Maryland. Debtors’ counsel’s 

office was advised of this, yet demanded the Vehicle be surrendered that day or sanctions would 

be filed.

4. Ally advised the office of Debtors’ counsel that an additional release had been sent 

to Bel Air Auto Auction and that Debtors were free to pickup the Vehicle when it arrived there.

5. On November 17, 2020, Ally was advised that the Vehicle had not arrived at the 

auction facility and that due to a mechanical breakdown of the transport carrier in route to 

Maryland, the Vehicle had yet to arrive at the auction facility. As of November 19, 2020, the 

Vehicle was still not at the auction facility.

6. On November 20, 2020, office of Debtors’ counsel was advised that the Vehicle 

would be ready for pickup on the next business day, November 23, 2020. Upon advice to Kane’s 

Case 20-34504-KLP Doc 18 Filed 11/25/20 Entered 11/25/20 18:21:00 Desc Main

Document Page 2 of 4
Carl A. Eason, Esquire

Counsel for Ally

Wolcott Rivers Gates

200 Bendix Road, Suite 300

Virginia Beach, Virginia 23452

bankruptcy@wolriv.com

(757) 497-6633

VSB# 18636

office, Ally was informed the Motion had been filed. 

7. Ally denies allegations contained in paragraph 4 of said Motion. Ally has never 

refused to release the Vehicle to the Debtors. Ally has suggested to Debtors that they may pickup 

the Vehicle at the auction at anytime without charge. Debtors indicated the inability to do so and 

asserted that Ally bears the financial burden of returning it. 

8. Ally denies the allegations contained in paragraph 5 of said Motion. As of this

date, the Debtors have not filed a Chapter 13 Plan to provide for Ally’s treatment. 

9. Ally denies the allegations contained in paragraphs 6, 7, 8 and 9 of said Motion.

Ally further denies any violation of 11 U.S.C. §§ 362 and 542, and the holdings of Tidewater 

Finance Company v. Moffett, 288 BR 721 (E.D.Va 2002). Ally had possession of the repossessed 

Vehicle for 13 days without advice of the anticipated filings and had placed in motion the chain of 

events necessary to lawfully dispose of the collateral. 

10. Debtors’ counsel has indicated that the Debtors have alternative transportation 

and have not been prejudiced. 

11. Notwithstanding the third party vendors of the Bel Air Auto Auction and

transport procedures, Ally has attempted to have the Vehicle returned to Virginia and to the 

Debtors in an expeditious manner and continues that effort as of this filing.

WHEREFORE, Ally requests the Motion for Turnover of Property of the Estate and for 

Respondent to Show Cause why it should not be held in Contempt for Violation of the Automatic 

Stay be denied.

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ALLY BANK (incorrectly listed as Ally Financial, Inc).

By: /s/ Carl A. Eason 

 Of Counsel

CERTIFICATION OF SERVICE

I hereby certify that on the 25TH day of November, 2020, a true copy of the foregoing 

Response was mailed or electronically transmitted to James E. Kane, Esquire, 1313 East Cary Street, 

P.O. Box 508, Richmond, VA, 23218-0508, counsel for Debtors, to Carl M. Bates, Esquire, P.O. Box 

1819, Richmond, VA, 23218, and to the Debtors at 11841 Winterpock Road, Chesterfield, VA, 

23838.

 /s/ Carl A. Eason 

Case 20-34504-KLP Doc 18 Filed 11/25/20 Entered 11/25/20 18:21:00 Desc Main

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