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: How Appealing

"This case presents the question whether the hanging paragraph eliminates an under-secured creditor's deficiency claim when, in a Chapter 13 plan, the debtors propose to surrender a car purchased within 910 days before filing for bankruptcy."

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"This case presents the question whether the hanging paragraph eliminates an under-secured creditor's deficiency claim when, in a Chapter 13 plan, the debtors propose to surrender a car purchased within 910 days before filing for bankruptcy. The courts are split on this issue." Addressing the "hanging paragraph" of 11 U.S.C. sec. 1325, a provision added to the Bankruptcy Code as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, a three-judge Eighth Circuit panel today rejects the rulings of a majority of bankruptcy courts that have addressed the issue and sides instead with what it describes as "the emerging trend" to allow a deficiency claim. You can access today's ruling at this link.

Full post as published by How Appealing on February 05, 2008 (boomark / email).

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