Document: 541 U.S. 465124 S. Ct. 1951158 L. Ed. 2d 787 Lee M. TILL, et ux., Petitionersv.SCS CREDIT CORPORATION No. 02-1016 SUPREME COURT OF THE UNITED STATES December 2, 2003, ArguedMay 17, 2004, Decided ON WRIT CERTIORARI TO APPEALS FOR SEVENTH CIRCUIT. In re Till, 301 F.3d 583, 2002 App. LEXIS 17274 (7th Cir. Ind., 2002) Rebecca J. Harper argued the cause for petitioners. David B. Salmons, pro hac vice, United States, as amicus curiae, by special leave of court. G. Eric Brunstad, Jr. respondent. Stevens, J., announced judgment Court and delivered an opinion, in which Souter, Ginsburg, Breyer, JJ., joined. Thomas, filed opinion concurring judgment. Scalia, a dissenting Rehnquist, C. O'Connor Kennedy, Justice Stevens Breyer join. 1 To qualify court approval under Chapter 13 Bankruptcy Code, individual debtor's proposed debt adjustment plan must accommodate each allowed, secured creditor one three ways: (1) obtaining creditor's acceptance plan; (2) surrendering property securing claim; or (3) providing both lien claim promise future distributions (such deferred cash payments) whose total "value, effective date plan, . is not less than allowed amount such claim." n1 The third alternative commonly known "cram down option" because it may be enforced over holder's objection. n2Associates Commercial Corp. v. Rash, 520 953, 957, 138 148, 117 1879 (1997). 2 Plans that invoke cram power often provide installment payments period years rather single payment. n3 circumstances, calibrated to ensure that, time, receives disbursements present value n4 equals exceeds claim. proceedings this case led our grant certiorari identified four different methods determining appropriate method with perform calibration. Indeed, Judge, District Court, Appeals majority, Judge endorsed approach. We detail underlying facts describe those approaches before setting forth approach best meets purposes Code. 3 * On October 1998, petitioners Amy residents Kokomo, Indiana, purchased used truck from Instant Auto Finance $6,395 plus $330.75 fees taxes. They made $300 payment financed balance purchase price entering into retail contract immediately assigned respondent, SCS Credit Corporation. Petitioners' initial indebtedness amounted $8,285.24--the $6,425.75 finance charge 21% per year 136 weeks, $1,859.49. Under contract, agreed make 68 biweekly cover debt; Auto--and subsequently respondent--retained money security interest gave right repossess if defaulted contract. 4 25, 1999, petitioners, then default on their joint petition relief At time filing, respondent's outstanding $4,894.89, but parties was worth only $4,000. 16-17. accordance therefore, limited $4,000, $894.89 unsecured. n5 filing automatically stayed debt-collection activity various creditors, including Internal Revenue Service (IRS), other holders claims, unidentified unsecured creditors. addition, created bankruptcy estate, administered trustee, consisted petitioners' property, truck. n6 5 called them submit earnings supervision control years, assign $740 wages trustee month. n7 Pet. Cert. 76a-81a. charged distributing these monthly wage assignments pay, order priority: administrative costs; IRS's priority tax creditors' claims; finally, (4) claims. Id., at 77a-79a. 6 also provided would pay portion rate 9.5% year. Petitioners arrived "prime-plus" "formula rate" augmenting national prime approximately 8% (applied banks when making low-risk loans) account risk nonpayment posed borrowers financial position. Respondent objected rate, contending company "entitled 21%, obtain could foreclose vehicle reinvest proceeds loans equivalent duration loan" originally 19-20. 7 hearing its objection, respondent presented expert testimony establishing uniformly charges so-called "subprime" loans, poor credit ratings, lenders subprime market rate. countered Indiana University-Purdue University Indianapolis economics professor, who acknowledged he had familiarity auto lending market, described formula "very reasonable" given plans are "supposed financially feasible." n8Id., 43-44. Moreover, professor noted exposure "fairly [petitioners] court." 43. comments supporting as, among things, easily ascertainable, closely tied "condition market," independent circumstances any particular lender. 41a-42a. Accepting evidence, overruled objection confirmed plan. 8 reversed. It understood Seventh Circuit precedent require courts set rates level have obtained foreclosed loan, sold collateral, reinvested risk. Citing unrebutted about concluded 38a. 9 appeal, slightly modified version Court's "coerced" "forced 591 (2002). Specifically, majority proceeding, inquiry should focus "that question new loan same industry debtor similarly situated, although bankruptcy." 592. approximate looked parties' prebankruptcy (21%). recognized, however, using "duplicat[e] precisely collateral creditor" bankrupt, court-supervised debtors "involve some risks incurred default" produce "some economies." Ibid. correct inaccuracies, held original "serve presumptive [cram down] rate," either challenge evidence higher lower apply. Accordingly, remanded afford opportunity rebut n9 10 Dissenting, Rovner majority's overcompensates creditors fails costs incur issuing loan. Rather focusing comparable advocated "straightforward cost funds" simply ask "what source." 595-596. Although produced funds might "piddling" relative coerced she suggested "consider extent has already been compensated will unable discharge his obligations reorganization return loan." 596. granted now reverse. Till Corp., 539 925, 156 601, 123 2572 (2003). II 11 Code provides little guidance opinions case--the rate--Congress mind adopted provision. That provision, U.S.C. § 1325(a)(5)(B) [11 USCS 1325(a)(5)(B)], does mention term "discount word "interest." Rather, requires distributed life plan," claim--in case, 1325(a)(5)(B)(ii). 12 command satisfied lump-sum creditor. Matters so simple, discharged series time. A immediate cannot use away, inflation dollar decline pays, there always nonpayment. reviewing repayment schemes, choose sufficient compensate concerns. Three important considerations govern choice. First, includes numerous provisions like "discoun[t] [a] stream back the[ir] value," Rake Wade, 508 464, 472, n. 8, 124 424, 113 2187 (1993), least n10 think likely Congress intended judges trustees follow essentially choosing provisions. we favor familiar community minimizes need expensive evidentiary proceedings. 14 Second, expressly authorizes modify rights anything "real principal residence. " 1322(b)(2) 1322(b)(2)]. n11 Thus, cases involving interests personal court's authority number, timing, perfectly clear. Further, potential terms intervening changes clear: hand, fact establishes overextended thus poses significant default; postbankruptcy obligor no longer somewhat reduced. n12 15 Third, point view creditor, provision mandates objective subjective inquiry. n13 is, entitles objectively match prebankruptcy, nor subjectively indifferent between foreclosure very idea down" precludes latter result: By definition, forced accept prefer instead foreclose. n14 consider dealings permitted n15 aim treat situated similarly, n16 economic analysis suggest adequately all default. III 16 These lead us reject approaches. Each complicated, imposes costs, aims whole required value. For example, similar (though nonbankrupt) debtors--an far removed courts' usual task evaluating debtors' feasibility plans. high enough factors, lenders' transaction overall profits, relevant context court-administered loans. 17 Like approach, improperly focuses sale. permits introduce thereby enabling tailor more reducing likelihood substantially overcompensated, comes cost: information overhead, practices Also, produces absurd results, entitling "inefficient, poorly managed lenders" profit margins "well managed, better capitalized lenders." K. Lundin, 112.1, p 112-8 (3d ed. 2000). Finally, relies heavily prior debtor, end up vastly rates. n17 18 too, aimed. rightly disregards now-irrelevant mistakenly creditworthiness debtor. many flaws burden, seeking asserted borrowing condition. creditworthy lender low unsound, fly-by-night IV 19 none defects. Taking cue ordinary practices, begins looking reported daily press, reflects market's estimate commercial bank borrower inflation, relatively slight n18 Because bankrupt typically pose greater solvent borrowers, adjust accordingly. size depends, course, factors nature security, therefore hold adjustment. Some included filings, additional expense. starting concededly adjusting upward places burden squarely readier access absent "liquidity post, ____, 158 2d, 813 (Scalia, dissenting)). fall within area expertise. 20 unlike approaches, entails straightforward, familiar, inquiry, potentially costly resulting depends state markets, characteristics interactions reasons, prime-plus comports n19 21 do decide proper scale adjustment, issue us. approved 1.5%, 44a-73a, generally adjustments 1% 3%, see Valenti, 105 55, 64 (CA2) (collecting cases), abrogated grounds Associates Respondent's core argument range entirely inadequate real fail. There dispute true risk--respondent claims 60% fail, Brief argue failure much lower, Tr. Oral Arg. 9. resolve dispute. note 1325(a)(6) 1325(a)(6)], approve unless, after considering objections receiving advice judge persuaded "the able comply plan." Together requirement obligates select doom If determines necessitate "eye-popping" 593 (Rovner, dissenting), probably confirmed. V 22 dissent's endorsement rests two assumptions: "subprime markets competitive largely efficient"; normally Post, 808-809. question, highly unlikely endorse premise. 23 dissent assumes negotiated fully informed buyers sellers classic free market. But basis concluding relied assumption enacted 13. several not, fact, competitive. begin with, vehicles regularly means tie-in transactions, subject negotiation, while financing dictated seller. n20 extensive federal n21 n22 regulation lending, itself distorts evinces regulators' belief unregulated exploit borrowers' ignorance above what allow. n23 Truth Lending Act part believed "consumers individually benefit credit, heightened competition result knowledgeable shopping." Rep. 96-368, (1979). n24 24 apparently believes default--on maximum law, 16, neither protections afforded 13--translates probability view, create program confirmation success. Perhaps currently confirm too risky plans, solution fewer absurdly levels, increasing 25 Thomas demonstrates, 806 (opinion judgment), text 1325(a)(5)(B)(ii) read support conclusion did intend include compensation n25 reading consistent 13's negligible. decision Rash adjusted "offset," possible, default, U.S., 962-963, 1879, considered (including authors earlier case) rejected risk-free late day now. Of statute matter. think, 1325(a)(5)(B)(ii)'s reference plan" incorporate components "present Thomas' emphasize, though, presumption succeed Congress' statutory scheme cynical "financial instability proclivity seek legal protection," 809. 26 Furthermore, assumptions necessarily thing, applies change circumstance (job loss, example) rendered insolvent. Relatedly, instances local conditions drastically improved declined issued bankruptcy. every reason properly risk-adjusted current times. 27 Even important, were equally available theory yield final principally differ adopt party (creditor debtor) bear rebutting (prime respectively). 28 Scalia identifies "relevant bearing premium[:] failure; depreciation; liquidity market; expenses enforcement." 813. remaining accessible (who collect remain competitive) (whose experience case). party, facilitating accurate calculation 29 sketchy data uncovered mandate application (rather merely exercise caution approving plans), forwarded Congress. persuaded, undermine interpretation enacted. 30 reversed, instructions remand further opinion. 31 ordered. 32 33 This presents discounting entitled calculating discount interest. Both plurality agree "[a] nonpayment." Ante, 797; 808. take disagree 34 I "promise payment" amount, irrelevant. distribute 1325(a)(5)(B)(ii)] (emphasis added). ignore clear apparent rush undercompensated debtor-specific put position they another write separately. 35 "It well established 'when statute's language plain, sole function courts--at where disposition absurd--is enforce according terms.'" Lamie States Tr., 540 ___, 157 1024, 1023 (2004) (slip op., 6-7) (quoting Hartford Underwriters Ins. Co. Union Planters Bank, N. A., 530 1, 6, 147 120 1942 (2000)). Section "with respect value, [must] [be] separate determinations. determine "property distributed. 36 centers "value" determined "as incorporates principle money. simply, $4,000 today received months today, can invested start earning immediately. See Encyclopedia Banking & 1015 (9th 1991). explained "[w]hen paid off pursuant payments, 'present value' decreased caused delayed payments." 2187, 8. 37 argues, agree, reflect contains requirement. valuation distributed," (i.e., itself). satisfy 1325(a)(5)(B)(ii), propose date, property. most, all, cases, proposes suffice. 38 here certainly acutely aware inherent nonsensical speak being "property" unless debt. Suppose, instance, A, house, house fluctuate B, fluctuating nothing deliver then, without possibility transfer honored. So cash: inclusion fail 39 n2 even small "will systematically undercompensate default." systematic undercompensation seem problematic matter policy. But, raises problem interpretation. promises repay B through lump sum payment, account. 40 say never factor defined 1325 suggests cash. "'property' cash, notes, stock, property; short, value." Collier P1129.03[7][b][i], p. 1129-44 (15th 2003) (discussing 11's provision). And distributed" pay), good promise. Still, accounting statute, note, itself. 41 argues "Congress crafted requirements section protection debtors," associated (citing Johnson Home State 501 78, 87-88, 115 66, 111 2150 (1991)). addition ignoring plain overlooks (1997), utilized secured-creditor-friendly replacement-value standard foreclosure-value valuing exercised option. reflected recognition "[i]f keeps continues it, obtains once exposed double risks: again deteriorate extended use." 962, 1879. 42 specifically protective. As pointed out Johnson, supra, 2150, number protect creditors: authorize "has faith," 1325(a)(3); claim, "retain lien[s]" receive equal "not claim," 1325(a)(5); 1325(a)(6). Given presence multiple creditor-specific protections, irrational assume opted requiring 1325(a)(5). feel insufficient complete ____ - n 809, brought attention resolved Court. 43 57. identify Amended Plan (Plan) provided: 44 "The DEBTOR(S) submitted shall TRUSTEE month weekly installments voluntary assignment ORDER estimated $170.77 continuing approves extension beyond 60 Petition herein." 77a. 45 From received, rata class listed petitioner 9.5%. equaling share months. 12. 46 distribution Plan. imply mere indicates consisting 47 task, whether sufficiently conclude will. reverse Appeals. 48 whom Chief Justice, O'Connor, Kennedy join, dissenting. 49 My areas agreement substantial. deemed feasible judge, nevertheless ante, 801. occur. 797. adequate sometimes "'eye-popping'" succeed, course reduce palatable level, refuse 50 Our disagreement procedure estimates rate--a know low--and increase it. believe practice, rate--i.e., actually loaned debtor--as revise motion party. Since indicator actual risk, disputes infrequent, quick reasonably standard. 51 contract-rate makes assumptions, reasonable. efficient. so, extortionate profits excessive present. Lenders undercut competitors, inefficient ones priced implicitly assumed competitiveness contexts. Bank America Nat. Trust Sav. Assn. 203 North LaSalle Street Partnership, 526 434, 456-458, 143 607, 119 1411 (1999). Here borne empirical evidence: One study reports nearly twice unprofitable banks, suggesting fiercely environment. Lane, Associate Director, Division Supervision, Federal Deposit Insurance Corporation, Regulator's View Subprime Lending: Address National Automotive Association Non-Prime Conference (June 18-19, (available Clerk file). relying efficient, L.Ed. 800; 52 second expected lending. statistic percentage resolving favor, still offer--which conservative estimate, doubtless lowest find--is 37%. Girth, Role Empirical Data Developing Legislation Individuals, 65 Ind. 40-42 (1989) (reporting 63.1% success rate). failed 37%, found supervised compliance, 1302. nonetheless proves oracles draw blood stone. 53 While oversight marginal seems obviously outweighed already-bankrupt demonstrated automatic stay bars repossession judicial permission. 362. strike me plausible lend individuals possibility--as widely viewed sort godsend. Cf. Dunagan, Enforcement Security Interests Motor Vehicles Bankruptcy, Consumer Fin. Q. 191, 197 (1998). Certainly record contradicts implausible proposition. (testimony Craig Cook, sales manager Finance) ("Q. Are you how applicants appear candidates bankruptcy?" "A. Negative[ly] well"). riskier debtors--or, least, risky. 54 first borrowing. persists files follows decent bound, cramdown. 55 assumptions. "vehicles seller." Tie-ins alone noncompetitive; prices tandem force plurality's unsubstantiated assertion contrary common experience. Car routinely advertise rates, offer promotions "zero-percent financing," engage behavior plainly customers sensitive just price. 56 points markets. 801-802, usury laws evince noncompetitive. conceivable explanation laws, countless others. statistical historical "primitive social insurance" meant "low rates" suffer adversity. Glaeser Scheinkman, Neither Borrower Nor Lender Be: An Economic Analysis Interest Restrictions Usury Laws, Law Econ. Such rationale inefficient, rent controls estate inefficient. Other rationales likewise shed light here. id., 27. existence weak 57 Act, 1601 seq. [15 §§ seq.], position; positively refutes full disclosure promotes competition, 24, 802; says much, 1601(a) 1601(a)]. presumes (or, noncompetitive absence disclosures requires). competitive--if indeed "dictated seller," 801--disclosure pointless, since consumers information. 58 (that lending), responds, generally, risky, 802. quite difficult predict Norberg, Bankruptcy's New Clothes: Study Discharge Debt Collection 13, Am. Bankr. Inst. Rev. 415, 462 assuming primarily dereliction unavoidable uncertainty, want abate. attained high-risk which, anticipate yield. 59 "transaction profits. 799. prescribes: banks' overhead necessary prevent investors going elsewhere. Koopmans Farm Services Mid-America, ACA, 102 874, 876 (CA7 1996). criticism exorbitant not--but, again, otherwise. Lending, 6. objects treated alike. presumption. thinks avoid unjustified disparity, so. solely lent times, average recent one. valid against irrebuttably propose. 61 defects outweigh starts indisputably low. adjusts adding premium ascertainable. rate--as 1.5% added below believe--then element computation forgiven. premiums, computed, reflection 13%--nearly two-thirds When ascertainable numbers. becomes tail wagging dog unknown size. 62 explain below, most enforcement. computed invariably grapple imponderables. contrast, assessing entrusted entity capable undertaking it: America, 457, ("[T]he way market"). All (assuming efficiency) readily document. judge's end. straightforward ways it--for showing oversecured, willing extend estimation contest issue. 63 defends ground 803-804. high. choice anything, bit low). consciously smacks policymaking faithful adherence amount" plausible--and desirable--that litigated cases. conducting detailed defending prohibitively relation stake consumer Whatever prescribe, norm be--and undoubtedly be--that litigating. reality, proving inaccuracy demonstration inadequacies case. testified feasible" Nothing shows platitudes somehow manipulated arrive figure 1.5%. bears repeating determinations 37% failing. cross-examination, admitted collection 44-45. devastating concessions, impossible smallish picked hat. Based rudimentary wrong--not couple percent, roughly magnitude. adequate, hypothetical, rational accepting sum. Whether indifferent--i.e., adequate--can gauged comparing benefits costs: extra interest, other, 66 offered top 8%. contemplated, $60. n8 defaulted, paid, $50. risk; turns out, yielding premium, $100. Against weigh precise calculations impossible, rough convey sense scale. 67 involves depreciation. defaults, eventually sell valuable due--and stop paying long permission repossess. almost confirmed, $4,895. suffered loss depreciation, $550. liquidation. replacement vehicle, i.e., 965, amount; lesser liquid spread buyer seller demand. record, but, figures guide, $450. 69 consists foreclosure. effect, prevents repossessing pay. 362 362]. attorney move lift stay. 362(d). arose, fee motions $150. Southern Schedule Fees (Nov. attorney's motions, survey, $350 $875 States. Cossitt, Attorney Fee Survey, American Institute Annual Spring Meeting (Apr. 10-13, excuse offenses, trips event $600 more. 70 omitted made. $1,600. selecting $590 ($1,600 multiplied chance failure) $100 (as above). No neighborhood 16%, 24%. 71 disputed. depreciate slowly first, perhaps economize fees, (other optimism) Tills liberal ones. magnitude, one's show possibly correct. 72 sum, approaching fair compensation. unusual, see, e.g., (CA2 1997) (recommending 1%-3% treasury 0% prime); predictable consequence methodology tells based imponderable factors. uncertainty enterprise, heartless demand unfortunate triple condition keeping transportation? challenges human nature. 73 JUSTICE THOMAS rejects He reads phrase 1325(a)(5)(B)(ii)], mean contemplates, 805 judgment). vests upon confirmation. guarantee promised made, 74 Viewed isolation, susceptible meaning. themselves rights, former "to confirmation, Context, supports my reading. cramdown option employed routes two--creditor surrender, 1325(a)(5)(A), (C)--are protective, leaving sought protection. this, underprotective; render favorable few ever alternatives. 75 leads anomalous results. admits distributes note. 806. practical difference obligating sign payments. why give other. 76 Circuits addressing divided calculate knowledge explicitly implicitly. (treasury premium); GMAC Jones, 999 F.2d 63, (CA3 1993) (contract rate); Carolina Hall, 993 1126, 1131 (CA4 (creditor's Smithwick, 121 211, 214 (CA5 Kidd, 315 671, 678 (CA6 (market loans); 592-593 (case below) Fisher, 930 1361, 1364 (CA8 1991) (interpreting parallel provision); Fowler, 903 694, 698 (CA9 1990) Hardzog, 901 858, 860 (CA10 rate) (Chapter 12); Inns, Inc., 709 647, 652-653 (CA11 1983) P1325.06[3][b], 1325-37 rev. 2004). adopting view. 77 valued replace contends selected failure, having context, 806-807. Rash. "value purpose [the] 506(a) 506(a)]. effect language, surrendered retain exchange "From perspective debtor's, surrender retention acts." not. effort correlate increased allowing him continue property--a "of significance." 963, stands proposition fundamentally sorts "disposition use," calling valuations. thought degree contrary, said "actual guide prescription hinged property's 'disposition use.'" 78 wanted done prescribing collateral. though values substantial, great small. faces all. calls securities, trivial, substantial risks. oversecured slightest derives 79 reasons prescribe Every action reaction somewhere. bankruptcy, or, riskiest borrowers. result, deserving denied place. evidently widespread preserving, ungenerous sympathetic debtors. 80 81 Today's burnish reputation reasoned decisionmaking. Eight Justices eight, beginning accurately ninth takes point, disagrees eight point; here, complaint. compensation, realistic prospect enforcing directive, respectfully dissent. 82 ---------- Footnotes 83 1325(a)(5) 1325(a)(5)]. follows: 84 "§ 1325. Confirmation 85 "(a) Except subsection (b), if-- 86 87 "(5) plan-- 88 "(A) holder accepted 89 "(B)(i) 90 "(ii) 91 "(C) surrenders ." 92 avail himself (surrender collateral) despite 93 (1993) (noting form "a payments"). 94 remainder value" refer 95 Title 506(a)] provides: 96 "An estate's setoff conjunction affecting interest." 97 541(a), 1306(a). 98 $1,089 Their amended reduced $740. 99 "confirm infra, 100 Indiana's 24-4.5-3-201 presumably benefited 101 1129(a)(7)(A)(ii) 1129(a)(7)(A)(ii)] (requiring claim); 1129(a)(7)(B), 1129(a)(9)(B)(i), 1129(a)(9)(C), 1129(b)(2)(A)(ii), 1129(b)(2)(B)(i), 1129(b)(2)(C)(i), 1173(a)(2), 1225(a)(4), 1225(a)(5)(B)(ii), 1228(b)(2), 1325(a)(4), 1228(b)(2) (same). 103 "[T]he residence, unaffected claims." 104 Several contribute reduction 801, (and part) deems creditworthy. "provide submission" [the debtor's] income execution 1322(a)(1), greatly Code's undisclosed obligations. Fourth, matter, public proceeding opportunities 525 525] (prohibiting certain Government programs discriminating bankrupt). reached creditor's, perspective. ("[The use, sale place, ."). 106 helps interest": imposed lenders. Interestingly, possession. See, Balmoral Financial http://www.balmoral.com/bdip.htm (all Internet materials visited Mar. 4, file) (advertising possession lending); Debtor Possession Financing: 1st Assistance DIP Division, http://www.loanmallusa.com/dip.htm (offering your business' needs work counsel"). picking efficient produce. look principles fairly exposure. 107 796 risk). 108 1322(a)(3) 1322(a)(3)] ("The treatment class"). 109 suppose purchases identical cars, buying zero-percent nominal Prebankruptcy, streams Postbankruptcy, entitle considerably debts indistinguishable. 110 legislation Circuit's H. R. 1085, 98th Cong., Sess., 19(2)(A) (1983); 1169, 4786, 97th (1981), lends conclusion. Executive Branch Thirteen Trustees. Amicus Curiae; Trustees Curiae. misinterpreted meaning confident enact remedial legislation. 112 notes "[t]ie-ins separately." 810. statement, true, nonresponsive. goods together, competitive, combined allocation separately negotiated. (the financing); goods) fixed. 960, (setting "price trade, business, situation seller"). cost-cum-financing irrelevant analysis. regulates transactions advertising. 1604-1649, 1661-1665b 1661-1665b]. 114 obvious examples Colo. Stat. 5-2-201 (2003); Fla. Ann. 537.011 (Supp. 2004); (1993); Md. Com. 12-404(d) (2000). Mississippi, "where conclusion: State, 40%"--well suffice Indiana. 438-439 116 1040, 90th (1967) basic premise standards advertising induced advertising, deprived effectively comparison shop credit"). "[t]he premium." Curiae 11, 4. States' brief, advocates 19-28. 118 --------Concurring Footnotes--------- 10%, $3,636.36 today. words, investor approximating riskless pure money." 830 (or be) built 122 --------Dissenting higher. Girth yielded division (Buffalo, York) ago (1980-1982). 41. later Buffalo ha[d] achieved extraordinary typical country whole." Whitford, Ideal Individualized Justice: Protection, Protection 397, 411, (1994). studies clearly exclude unconfirmed correction: finds 32% filings successful, 18% dismissed 49% postconfirmation 49%/(32% + 49%)). 440-441 Girth. presumption, remains prove risen fallen executed, chose 125 "perfectly competitive," 801 added), agree. doubt pricing 126 confess "nonresponsive" footnote jointly car's price), 20, 801; response competitive), issue, point. itself, traded vice versa. Nonetheless, bias degree. offers promotional rate--such financing"--in price, opposite tactic--inflating decreasing price--is constrained buyer's taking advantage avoiding (If rely risk.) probative evidence. inaccuracy, 127 regulatory "distorts market." distort meaningful sense. do, distortion works artificially 128 avoided bankruptcy--for loan-origination minor component According new-car 8.5%--only 0.5% 2.5% Professor Steve Russell). 2% represented "mostly [and] costs." 42. fraction percent. Any avoids incurs. 129 miscellaneous criticisms survive scrutiny either. 803, nothing. substance "national issued." amount. supra. approach: gauge significance difference, (but change) accurate, (with close. 130 priority, plan's contributions, repaid $2,000, half balance. x $2,000 = following calculations, timing effects 131 Assuming results interest's $60 (1 37%/2), 132 Russell); Reserve Board, Selected Rates, http://www.federalreserve.gov/releases/ h15/data.htm Apr. 19, 2004) (historical exceeding 3-month constant-maturity 2%-3.5%). "mostly" three-quarters 2%, happens prime, nn 8-9, 133 initially $6,395; $6,426. 134 depreciation ($6,395 $2,395) exceeded ($6,426 $4,895, $1,531) $864, 14% $6,395. Applying yields 135 $41,000 $31,875, 22% less. repossessed losing $100, 814, $590, 5.9 times high, 18%, 16.5% prime. 137 recover undersecurity claimant, 506(b) 506(b)]. cf. mentioned. 139 suffers liquidating 815. illogical "compensate" liquidation (replacement minus value),

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