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Article: Chapter 13 plan denied confirmation by 6th Circuit
- Article from:
- Lawyers USA
- Article date:
- January 14, 2009
CopyrightCopyright 2009 Lawyers USA. Provided by ProQuest LLC. (Hide copyright information)
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A bankruptcy judge did not have the discretion to confirm a
Chapter 13 plan that failed to comply with the Bankruptcy Code's
"hanging paragraph," the 6th Circuit has ruled in affirming a
decision denying confirmation. Under 11 U.S.C. [section]1325(a),
a Chapter 13 debtor who still owes money on an automobile may elect
to keep the vehicle and "bifurcate" the creditor's fully secured
claim into a secured portion, representing the present value of the
vehicle, and an unsecured portion.
However, the Bankruptcy Abuse Prevention and Consumer Protection
Act added a "hanging paragraph" to [section]1325. The hanging
paragraph has generally been interpreted to prohibit bifurcation
with respect to ...