In re Vandernick
Mar
31
2008
Ruling
Hanging paragraph did not prevent application of prime-plus interest on claims secured by vehicles.
Procedural posture
In separate cases, bankruptcy debtors purchased vehicles within the period prior to filing their bankruptcy petitions which implicated the provision of 11 U.S.C.S. § 1325(a) (hanging paragraph referencing paragraph 5) barring application of 11 U.S.C.S. § 506 to claims secured by the vehicles. The debtors proposed plans with minimal or no interest to creditors holding such claims, and the creditors objected to confirmation of the plans.
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Court
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