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§ 1325(a)(9)

In re Vagi

Sep
26
2006
Ruling
Section 1325(a)(9) hanging paragraph applied to property purchased by debtor for use of co- debtor wife.
Procedural posture

After the debtors filed a joint chapter 13 petition, a creditor filed a proof of claim secured by a minivan. The debtors objected to the claim, contending that the secured claim should have been reduced and that the balance of the claim should have been treated as a general unsecured claim, pursuant to the cram down provisions of 11 U.S.C. § 506. The court held an evidentiary hearing.

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opinion summary, case decided on September 26, 2006 , LexisNexis #1006-115
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In re Bolze

Aug
31
2006
Ruling
Debt secured by automobile acquired within 910 days of filing was not subject to bifurcation.
Procedural posture

Plaintiff debtors filed a proposed chapter 13 bankruptcy plan. A secured creditor, a creditor union, objected to the plan. Debtor one had borrowed money from the creditor to purchase a car, which was titled in both debtors'names. The creditor held a perfected purchase money security interest in the vehicle. In their plan, the debtors proposed to cram down the creditor's claim, treating only a portion of it as a secured claim.

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opinion summary, case decided on August 31, 2006 , LexisNexis #1006-082
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In re Montgomery

May
17
2006
Ruling
Objection to confirmation was sustained since the "hanging paragraph"after section 1325(a)(9) prohibited bifurcation under section 506(a)(1) of the secured claim of a purchase-money moter vehicle creditor even where creditor failed to timely object.
Procedural posture

Respondent secured creditor objected to confirmation of petitioner debtors'proposed chapter 13 plan.

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opinion summary, case decided on May 17, 2006 , LexisNexis #0606-007
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In re Montoya

Apr
10
2006
Ruling
Chapter 13 plan was not confirmed since the debtor was not allowed to use section 506 to cram down a vehicle purchased within 910 days of filing.
Procedural posture

Debtor proposed a chapter 13 plan in which she sought to pay for a vehicle that she purchased within 910 days of filing her petition by bifurcating the secured claim under 11 U.S.C. § 506(a)(1), paying the secured value of the car in full, and paying only a small percentage of the unsecured balance. The secured creditor had neither filed a claim nor a brief.

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opinion summary, case decided on April 10, 2006 , LexisNexis #0506-064
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In re Carver

Mar
06
2006
Ruling
Court interpreted new section 1325(a)(9) to provide that claims under a chapter 13 plan involving a vehicle purchased within the 910-day period prior to filing must receive the greater of either the claim's full amount without interest or the amount the creditor would have received if the claim were bifurcated between secured and unsecured portions and crammed down.
Procedural posture

In their chapter 13 plan, the debtors listed the creditor that financed their vehicle as having a fully secured allowed claim for $15,000 and proposed to pay the creditor in monthly installments of $250 without interest. The debtors did not dispute that they purchased the vehicle during the 910-day period prior to filing their petition and that they purchased it for personal use. The creditor filed an objection to confirmation of the plan.

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opinion summary, case decided on March 06, 2006 , LexisNexis #0306-113
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In re Johnson

Feb
02
2006
Ruling
Debtors could not strip down in a chapter 13 plan a secured creditor's purchase money security loans on vehicles purchased for the debtors'personal use within 910 days of filing.
Procedural posture

Creditor filed an objection to confirmation of the debtors'proposed chapter 13 plan regarding treatment of its secured claim in the debtors'vehicle. The creditor argued that the vehicle debt could not be crammed down under the terms of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

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opinion summary, case decided on February 02, 2006 , LexisNexis #0306-075
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