Source: https://www.georgiabankruptcyblog.com/southern-district-cases/southern-district-cases-sdga-section-1325-the-910-clause-means-that-secured-claims-cannot-be-bifurcated
Timestamp: 2019-06-20 09:56:27
Document Index: 600237895

Matched Legal Cases: ['§ 506', '§1325', '§506', '§1325', '§1325', '§1325', '§506']

SDGa - Section 1325 (The "910" Clause) Means that Secured Claims Cannot Be Bifurcated | Georgia Bankruptcy Blog
Home > Southern District Cases > SDGa – Section 1325 (The “910” Clause) Means that Secured Claims Cannot Be Bifurcated
11 U.S.C. §§ 506, 1325; Secured Claims
In re Brown, 2006 Bankr. LEXIS 476, Case No. 05-21764 (Bankr. S.D. Ga. March 27, 2006)(Dalis)
Debtor purchased a personal vehicle within 910 days of filing a Chapter 13 petition, and the creditor filed a claim stating that the vehicle debt was 100% secured. The debtor proposed a plan that paid the creditor less than the present value of the claim and the creditor objected to confirmation. Debtor argued that the unnumbered paragraph added to §1325 in the BAPCPA regarding the purchase of personal use vehicles within 910 days of filing stated that §506 was not applicable and, therefore, the creditor did not have an allowed secured claim. Therefore, debtor argues, §1325(a)(5)(B)(ii), requiring the payment of the present value of secured claims, is not applicable to the claim.
The court found debtor’s argument unpersuasive, finding that the unnumbered paragraph of §1325 does not alter the claims described in the paragraph as secured, and it does not exempt such claims from the present value requirements of §1325(a)(5)(B)(ii). Rather, it means that the secured claims it describes cannot be bifurcated into secured and unsecured portions pursuant to §506(a).
Note: For further discussion of this issue, see this article at the ABI BAPCPA Blog.