“TRANSFORMATION” RULE AND NEGATIVE EQUITY DISCUSSED; GAP INSURANCE, SERVICE CONTRACT NOT PART OF COLLATERAL In re Miller, Case No 08-40935 December 2008, Judge Karlin Debtor sought, and was permitted, to pay only the cost of the car, rather than cost plus other charges. Court did not rule on whether certain fees not adequately addressed by…
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Category Archives: Vehicles
Negative Equity
NEGATIVE EQUITY ISSUE NOT RULED UPON IN 1327 CASE In re Kuhasz, Case No. 07-20282 November 2008, Judge Somers Court noted split within the district. Judge Karlin excluded negative equity from PMSI claim in In re Padgett, 389 BR 203, while Judge Nugent included it. In re Ford 387 BR 14827 but declined to rule…
What Is Business Use of Vehicle?
BUSINESS USE MUST BE “SIGNIFICANT” TO ESCAPE 910 FULL PAYMENT In re Wilson, Case No. 06-40637 December 2006, Judge Karlin Debtor sought to avoid the full payment requirement of the 910 car loan provision. Debtors were using the vehicles in question for personal and business use, as they served as foster parents. The court followed…
Creditor Gets Deficiency Claim After Collateral Surrender
10th CIRCUIT ‘RULES’ In re Rule, Case No. 06-22145 July, 2008, Judge Berger Judge Berger followed In re Ballard 526 F. 3d 634 (10th Cir. 2008), in finding that a 910 car loan may have a deficiency balance after sale of the vehicle.
Cramdown of Daughter’s Car Bad Faith
CAR OWNED BY CHILD CAN BE CRAMMED DOWN BUT NOT GOOD FAITH In re Lewis, Case No. 06-20027 August 2006, Judge Somers The vehicle the debtors proposed to cramdown in the plan was found to belong to the daughter, even though titled to debtors. Daughter made the payments. However, the Court found that the plan…
910 Car Claims Get Interest
SURRENDER IN FULL SATISFACTION OF 910 AND PAYMENT IN FULL WITH NOT INTEREST NOT ALLOWED In re McClay, Case No. 07-20106 October 2008, Judge Berger 910 vehicle case. Plan provided for payment of full debt with no interest and option to surrender in full satisfaction. This was found to be an attempt to modify prospectively…
What Is Personal Use of Vehicle for 910 Claim?
PERSONAL VS. BUSINESS USE FOR 910 CAR CLAIMS In re Lowder, Case No. 05-44802 August 2006, Judge Karlin Creditor objected to confirmation as debtor sought to avoid the 910 car loan restriction by arguing that she used the car to get to and from work and, therefore, not “personal”. Debtor contended that Toyota is entitled…
Is Force Placed Insurance Part of 910 Vehicle Claim?
COST OF FORCED PLACED INSURANCE IS PART OF PMSI FOR 910 VEHICLE In re Townsend, Case No 07-20956 April 2008, Judge Somers Noting that BAPCPA does not define PMSI but that the phrase is a term of art under the UCC, the Court found that under Missouri law, 9-103 governs and forced place insurance falls…
What Is Collateral in Bankruptcy?
Collateral: The property that is subject to a lien. A creditor with rights in collateral is a secured creditor and has additional protections in the Bankruptcy Code for the claim secured by collateral. The measure of the secured claim is the value of the collateral available to secure the claim: it is possible to have…
My Car Is Paid For, Can I Deduct Ownership Expense on Means Test?
OWNERSHIP EXPENSE NOT ALLOWED IF VEHICLE PAID FOR In re Howell, Case No. 06-11652 April 2007, Judge Nugent Trustee objected to 13 confirmation under 1325(b)(1)(B) on basis that debtors projected disposable income was too low because they were deducted an ownership expense on Line 28 of B22C even though vehicle was fully paid for and…
Topeka Chapter 13 Trustee Inducted into American College of Bankruptcy
Jan Michael Hamilton, standing chapter 13 bankruptcy trustee for cases filed in Topeka, was inducted into the American College of Bankruptcy Friday. Hamilton was in the private practice of law from 1973 through 1999 when he was named to the trustee post. Hamilton traveled to Washington, D.C., for the ceremony at the U.S. Supreme Court…
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Jill Michaux & Mark Neis
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