Years ago had a local dealer go under for numerous legal reasons involving nearly 2 million in fraud. Owner was selling customers boats that were in for service or consignment boats not getting paid out, or refusing to give back boats when customers came to pick them up. Eventually led to a search warrant of the dealership and everything was seized, wasn’t pretty and took a long time to resolve. Customers without boats waiting for until charges were placed on the dealership. 
 

I doubt Tommy’s will get to that level but you never know. 

45 minutes ago, NewLakeLifer said:

We bought a 2001 SSLXI! I appreciate all the help you guys provided. 

Pictures, or it didn't happen.

Congratulations!

Ours is similar to the one in the image too we also have the Mercruiser Marine 5.7L 330 hp Black Scorpion motor under the hood.

3 minutes ago, Bozboat said:

I agree, if you left a titled boat for repair you should get it back, maybe not immediately. We had a local seaplane repair company (yes in North Central Texas 🤷🏻‍♂️) that went bankrupt in possession of a Grumman seaplane, when the trustee tried to grab the incoming money from the seaplane owner for the repairs, the airplane miraculously became disassembled overnight. 

 The other situation I was asking about is where I leave my trade in and sign all the papers and agree to come back for delivery of my new XX, the dealer files bankruptcy before the title application hits DMV and now I’m an unsecured creditor. Personally I would take delivery on the day no signed the purchase agreement in order to lessen that risk.

That is good advice for anything.  Even on cars and trucks, if they want to do the - oh we have to prep it and you can pick it up tomorrow then I say fine I will be back tomorrow to buy it.

1 hour ago, shawndoggy said:

even if unsecured, the difference here would be that the owner of the boat-in-need-of-warranty-work is the owner of that asset, not Tommy's.  So BK trustee / receiver shouldn't be able to assert any interest in the customer's boat.

That said, it wouldn't be unreasonable for a BK trustee to need some time to get up to speed and during that time lock down the facility (with warranty boat inside) while they figure out who owns what.  But a top priority would be to get a list of storage/repair/warranty vessels and to contact the owners and arrange time for pickup.  At least that's how it has worked in my area under similar circumstances when the local RV dealer goes belly up every five years or so.

The actual warranty/repair work may not get done but the boats will get back to their owners in relatively short-ish-but-not-immediate order.  That can be an issue where the customer's boat is substantially disassembled waiting for a part (like an "opened shoebox" waiting for a ballast tank replacement or something like that).  Not that the BK trustee will assert that the disassembled boat is owned by the BK estate, but rather may not be able to actually get the work done timely (if at all).

(scratch head... wonder if owner's casualty insurance covers "damage" resulting from incomplete repair?  Or maybe shop's liability insurance, assuming premiums get paid at edge of insolvency?)

 

I agree, if you left a titled boat for repair you should get it back, maybe not immediately. We had a local seaplane repair company (yes in North Central Texas 🤷🏻‍♂️) that went bankrupt in possession of a Grumman seaplane, when the trustee tried to grab the incoming money from the seaplane owner for the repairs, the airplane miraculously became disassembled overnight. 

 The other situation I was asking about is where I leave my trade in and sign all the papers and agree to come back for delivery of my new XX, the dealer files bankruptcy before the title application hits DMV and now I’m an unsecured creditor. Personally I would take delivery on the day I signed the purchase agreement in order to lessen that risk.