CASE NO. 10-24580 JPK.United States Bankruptcy Court, N.D. Indiana, Hammond Division.
August 12, 2011
ORDER REGARDING MOTION FOR SUBSTITUTION OF COLLATERAL (“MOTION”)
PHILIP KLINGEBERGER, Bankruptcy Judge
The Motion was filed on July 21, 2011. The Motion refers to insurance proceeds available to the debtor for purchase of a vehicle to replace a 2006 Dodge Charger alleged to have been totaled in an automobile accident, a vehicle upon which Santander is alleged to have a security interest. The relief requested is that the debtor be allowed to use the insurance proceeds to replace the destroyed vehicle. While the Motion was served upon Santander as a secured creditor, the Motion was not served upon the insurance company whose proceeds are proposed to be used to purchase a replacement vehicle; in fact, the identity of the insurance company is not even designated in the Motion. The court’s order on this Motion will act in essence as an affirmative injunction on the insurance company, in a manner which may place it in a position of conflict in relation to its duty to Santander as a secured creditor. It is necessary that the insurer be made a party to this contested matter, both by specifically designating the insurer in the Motion and by serving the Motion in the manner required by applicable law upon the insurer.
IT IS ORDERED that the debtor shall file an amended motion which conforms to the requirements of this order (the motion is to include both the name and address of the insurer, and be served upon the insurer) — by August 22, 2011. Upon the filing of a conforming motion, and its proper service upon the parties thereto, the court will schedule the motion for a hearing upon notice to the necessary parties. Failure to comply with this order will result in denial of the
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Motion without prejudice.
Dated at Hammond, Indiana.