Seventh Circuit Review
Article Title
Abstract
What happens to a 910 creditor’s claim under the BAPCPA where a Chapter 13 debtor surrenders the 910 vehicle to the creditor? Bankruptcy courts are divided—both among and within circuits—resulting in costly litigation between parties unsure of the approach to which the particular court subscribes. The Seventh Circuit, in In re Wright, became the first Court of Appeals to address this issue and concluded that where a debtor surrenders the 910 vehicle, the creditor is allowed to bifurcate its claim into a secured and unsecured portion. Specifically, if the amount of the claim exceeds the value of the surrendered vehicle, the 910 creditor is entitled to an unsecured claim in the amount of the deficiency. This article analyzes whether the Seventh Circuit properly allowed bifurcation of the creditor’s claim despite the BAPCPA’s explicit prohibition of application of the Bankruptcy Code’s bifurcation statute to the claims of 910 creditors.
Recommended Citation
Simone Jones,
Who’s Left Suspended on the Line?: The Ominous Hanging Paragraph and the Seventh Circuit’s Interpretation in In re Wright,
3
Seventh Circuit Rev.
1
(2007).
Available at:
https://scholarship.kentlaw.iit.edu/seventhcircuitreview/vol3/iss1/2