Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Tag Archives: hanging paragraph

11th Circuit First To Rule On “Hanging Paragraph” Of Section 1325(a); Negative Equity In “910 Vehicles” Constitutes “Purchase Money Security Interest” That Prohibits Bifurcation Of Claim

Graupner v. Nuvell Credit Corp. (In re Graupner), No. 07-13657 (11th Cir. August 6, 2008) (click here for opinion).  In a case of first impression at the Circuit level, the Eleventh Circuit Court of Appeals examined the "hanging paragraph" that comes after 11 U.S.C. §1325(a)(9). The basic facts of this case are as follows: Debtor purchased a… Continue Reading

District Court for Middle District Holds Surrender Of “910 Vehicle” Constitutes Full Satisfaction Of Claim

Jason Braswell of Morgan & Morgan in Athens, Georgia passed along is case of  In re Carter , Case No. 3:07-CV-50, Ch. 13 Case No. 06-30846 (M.D. Ga.) (click here for .pdf), wherein Judge Land affirmed the Bankruptcy Court’s ruling that surrender of "910 vehicles" constitutes full satisfaction of the claim.  This issue has been discussed… Continue Reading

Hanging Paragraph Of §1325 Again; Tenth Circuit BAP Follows “Majority,” Holds That Surrender Of “910 Vehicle” Constitutes Full Satisfaction Of Claim

On July 5, 2007, the Seventh Circuit held that the "hanging paragraph" of 11 U.S.C. §1325 meant that the secured creditor may assert a deficiency claim after the surrender and liquidation of a "910 vehicle."  This is generally known as the minority position (and the one followed in the ND Ga). See this post for… Continue Reading

Hanging Paragraph Of §1325 Again; Tenth Circuit BAP Follows “Majority,” Holds That Surrender Of “910 Vehicle” Constitutes Full Satisfaction Of Claim

On July 5, 2007, the Seventh Circuit held that the "hanging paragraph" of 11 U.S.C. §1325 meant that the secured creditor may assert a deficiency claim after the surrender and liquidation of a "910 vehicle."  This is generally known as the minority position (and the one followed in the ND Ga). See this post for… Continue Reading

Seventh Circuit Follows Minority Position – Hanging Paragraph Of §1325 Allows Creditor A Deficiency Claim After Surrender of Collateral

In a case that was a direct appeal to the Seventh Circuit Court of Appeals, pursuant to 28 U.S.C. §158(d)(2)(A), the Court held that the "hanging paragraph" of 11 U.S.C. §1325 left lenders with a deficiency claim after surrender of the "910 vehicle."   The Court rejects the majority (?) view that Congress "accidentally gave debtors… Continue Reading

Seventh Circuit Follows Minority Position – Hanging Paragraph Of §1325 Allows Creditor A Deficiency Claim After Surrender of Collateral

In a case that was a direct appeal to the Seventh Circuit Court of Appeals, pursuant to 28 U.S.C. §158(d)(2)(A), the Court held that the "hanging paragraph" of 11 U.S.C. §1325 left lenders with a deficiency claim after surrender of the "910 vehicle."   The Court rejects the majority (?) view that Congress "accidentally gave debtors… Continue Reading

MD Ga – Vehicle Driven Primarily By Debtor’s Spouse Was Not “Aquired For Personal Use of Debtor,” And Hanging Paragraph Of §1325(a) Did Not Protect Creditor

By: Scott B. Riddle, Esq. In In re Adams, Ch. 13 Case No. 06-51651, 2007 Bankr. LEXIS 616 (Bankr. M.D. Ga. March 1, 2007)(Hershner), the debtor husband purchased a new vehicle within 910 days of the filing of his Chapter 13 petition.  In his plan, Debtor proposed to bifurcate the secured lender’s claim into secured… Continue Reading

MD Ga – Vehicle Driven Primarily By Debtor’s Spouse Was Not “Aquired For Personal Use of Debtor,” And Hanging Paragraph Of §1325(a) Did Not Protect Creditor

By: Scott B. Riddle, Esq. In In re Adams, Ch. 13 Case No. 06-51651, 2007 Bankr. LEXIS 616 (Bankr. M.D. Ga. March 1, 2007)(Hershner), the debtor husband purchased a new vehicle within 910 days of the filing of his Chapter 13 petition.  In his plan, Debtor proposed to bifurcate the secured lender’s claim into secured… Continue Reading