Woods Auto Wins

Woods Auto Gallery had declared bankruptcy last week under Chapter 11 of the Bankruptcy laws, and listed their debts as $2.3 million. Part of that debt was auto loans to Bank Star One, who had come in and seized the automobiles that they say the gallery did not pay for.

A federal bankruptcy judge in Kansas City ordered the bank to return the seized cars to the gallery. They had seized them because they had not been paid on the auto loans. However, the judge said the cars had to go back immediately, as well as the titles to the cars that they had taken as well.

Bank Star One now has a short period of time in which they have to determine which of the vehicle titles in their possession belong to the consumers – those that Woods had sold before they were seized. The Bank maintains that Gregg and Angela Woods had defaulted on their car loans, and they wanted $1.7 million in principal and interest.

The Woods’ maintain that the bank breached their agreement that gave them 45 days to pay back the auto loan, instead, they came in the day after the deal was signed and took the cars.

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