Lender is Declaring Default, Demanding Collateral

[Ridgetop]

My question involves personal property located in the State of: California
Note holder is pulling some shady moves to keep collateral property. I declared chapter thirteen bk in april last year. I am trying to hold onto a boat that I own with a partner. Partner needed out of the boat so I borrowed 6000 dollars from a family friend, my best friends father. I put up a tractor that I own for collateral. My girlfriend helped draw up some generic legal papers we agreed on and ad notarized. The forms were downloaded from a cd rom I bought at a local office Supply store. It is Adams brand Personal Legal Forms and Agreements. I filled out Receipt for Collateral , a Promissory Note (secured), and a Security Agreement. In the security agreement it stated that if I became 3 months past due on payments te note holder could satisfy the note by securing the collateral property. This is where it gets shady. I made a double payment immediately. I am unemployed and went through hell over the holidays when I found out that my girlfriend screwed around on me with a guy at work. She moved out and rented a room from........ You guessed it my buddies dad who loaned me the money. Long story but it turned out she was doing a little more than renting a room from him. She is 26 and he is 60. Upon confronting her I overheard a conversation between them to sell my tractor to fund some extracurricular activities.Over the following weeks I attempted to contact and make monthly payment and finally payment in full. I left voice mail, email, letters in mailbox, and even put a note on te gate to his property trying to arrange a payment. I got no response until a letter came from his attorney declaring I was in total default and he was keeping the tractor. The agreements were executed to protect his money not provide a loophole for him to scam me out of my tractor. Any Ideas on were I stand. I sent his attorney an email explaining where I stand and offering again Payment in full for return of my property. Any advice would be appreciated. I am in the Bay Area California Thanks,P

[Mr. Knowitall]

You either made the payments or you didn't. Your girlfriend's infidelity is irrelevant.

I expect that the promissory note explains where and how payments are to be made. I can't read it from here, though. As for, "Over the following weeks I attempted to contact and make monthly payment and finally payment in full", why couldn't you simply mail him your payments, per the contract?

[Ridgetop]

There was nothing stated in the prommisary note or receipt of collateral as to how the payments were to be made. The last attempt to reach him by mail, I was later informed, went into a burnbarrel unopened. One thing I forgot to mention was that after the second email sent to his attorney I received a letter stating that he would no longer be representing my friends father with reguards to the tractor. I have started an email explaining why I believe I am legally in the right and was hoping someone might let me know if Im on the right track. This has not been sent. I will not bore you with the details of my previous messages that I proved, In my mind good faith. (43) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
Good faith Jim is what I have proven over and over by honoring your requests and attempting to make payments multiple times and finally attempt pay off completly in every different method I could think of as well as attempting to contact you every way someone who intended to keep their end of the agreement.
(4) the secured party may use or operate the collateral:
(A) for the purpose of preserving the collateral or its value;
(B) as permitted by an order of a court having competent jurisdiction; or
(C) except in the case of consumer goods, in the manner and to the extent agreed by the debtor.
DUTIES OF SECURED PARTY IF ACCOUNT DEBTOR HAS BEEN NOTIFIED OF ASSIGNMENT.
(a) [Applicability of section.]
Except as otherwise provided in subsection (c), this section applies if:
(1) there is no outstanding secured obligation; and
(2) the secured party is not committed to make advances, incur obligations, or otherwise give value.
(b) [Duties of secured party after receiving demand from debtor.]
Within 10 days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under Section 9-406(a) an authenticated record that releases the account debtor from any further obligation to the secured party.
I have missed out on a great deal of work due to this.

I realise this is a very uncommon situation but I have done everything possible to keep my end of the bargain. Any thoughts appreciated.