In re Padgett
May
27
2008
Ruling
Negative equity in vehicle loan was not a purchase money security interest under sate law so that bifurcation was permitted under hanging paragraph.
Procedural posture
Bankruptcy debtors proposed a plan which provided for bifurcation of a creditor's claim which was secured by a vehicle purchased by the debtors for their personal use within 910 days of filing bankruptcy. The creditor objected to confirmation of the debtor's plan on the ground that such bifurcation was precluded under 11 U.S.C.S. § 1325(a) (hanging paragraph referencing paragraph 5).
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Court
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