Contact: John Hartgen
703-739-0800
VEHI
CHAPTER 13 PLAN MUST INCLUDE INTEREST, ACCORDING TO LATEST
July 16, 2007, Alexandria,
Va. —A majority of respondents (60 percent) to
poll agreed that interest must be included in the car payments within a
proposed chapter 13 plan for a debtor who purchased the vehicle within
910 of days of bankruptcy. Forty-three percent of respondents
“strongly agreed” and 17 percent “somewhat
agreed” that the interest should be included in the installment
payments proposed in chapter 13 plans for vehicles purchased by debtors
for personal use within 910 days of their bankruptcy filing.
Twenty-seven percent of
respondents, however, did not agree that interest should be included
within the installment payments laid out in a chapter 13 plan for a
vehicle purchased by a debtor within 910 days of filing. Twenty
percent “strongly disagreed” and 7 percent “somewhat
disagreed” that the interest payments should not be included in
the vehicle installment payments of a chapter 13 debtor. Ten percent of
the respondents did not know or had no opinion on the issue.
The poll question is based on a
March decision by the Sixth Circuit Court of Appeals that reversed a
bankruptcy court’s ruling in the case of Daimler Chrysler
Services North America LLC v. Taranto. In that case, the court
stated that a chapter 13 plan that proposes periodic installment
payments to a creditor secured by a debtor’s vehicle purchased for
personal use within 910 days of the debtor’s bankruptcy filing
must also provide for payment of the interest.
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were welcome to submit their response to the statement: “A
chapter 13 plan that proposes to pay periodic installment payments to a
creditor secured by a vehicle purchased by debtor for personal use
within 910 days of his bankruptcy filing, must also provide for the
payment of interest. (See Daimler Chrysler Services North America
LLC v.
w:st='on'>Taranto
3/30/07). The latest
Quick Poll was open to the public for voting from June 29-July12.
size='3'>ABI
on
title='http://www.abiworld.org/' href='http://www.abiworld.org/'>
color='#0000ff'>www.abiworld.org.
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respond to a question on a timely bankruptcy or insolvency issue. Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff'>http://www.abiworld.net/quickpoll/ to access
the results of previous
Quick Polls.
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size='3'>ABI
nonpartisan organization dedicated to research and education on matters
related to insolvency.
was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The
w:st='on'>ABI
attorneys, accountants, bankers, judges, professors, lenders, turnaround
specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
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title='http://www.abiworld.org/conferences.html'
href='http://www.abiworld.org/conferences.html'>
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