General Motors Acceptance Corp. v. Lyons (In Re Lyons)

ORDER

W. HOMER DRAKE, Jr., Bankruptcy Judge.

On August 27,1981, the above-referenced debtors filed their petition under Chapter 7 of the Bankruptcy Code. On January 4, 1982, General Motors Acceptance Corporation (“GMAC”) filed its Complaint for Relief from the Automatic Stay, seeking to repossess and foreclose on a 1980 Oldsmobile Cutlass automobile. On January 20, 1982, the debtors filed their answer to GMAC’s complaint. Paragraph Four of said answer admitted that the debtors have no equity in the 1980 Oldsmobile Cutlass automobile.

The debtors have argued that any default is due to (1) the…