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In re Westfall

April 9, 2010 by Thomas Geygan

Judgment of the district court affirming the bankruptcy court’s order confirming the Chapter 13 plan filed by the debtors is affirmed as the portion of a creditor’s secured claim attributable to the payoff of negative equity qualifies for protection from cramdown under the hanging paragraph of 11 U.S.C. section 1325(a) because negative equity financing constitutes a purchase money obligation under the UCC and thus the associated security interest satisfies the UCC’s definition of a purchase money security interest.

Filed Under: Bankruptcy, Chapter 13

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