(Bankr. S.D. Ind. Feb. 24, 2016)
The bankruptcy court overrules the trustee’s objection to the debtors’ proposed Chapter 13 plan. For purposes of the means test, the debtors deducted as a car ownership expense payments on a non-purchase money loan secured by their car. The trustee objected, arguing that the deduction was inappropriate because it was not a purchase-money loan and thus not a car ownership expense. The trustee relied on the Supreme Court’s decision in Ransom v. FIA Card Services, N.A. The bankruptcy court rejected the trustee’s argument, holding that the expense constituted a car ownership expense for purposes of the means test.
2016-02-24 – in re brunck
Author: Matt Lindblom
(6th Cir. Aug. 14, 2014)
The Sixth Circuit reverses the bankruptcy court’s decision holding that the livestock business’s leases of livestock to the debtor dairy farmer were per se security agreements such that the bank’s purchase money security interest trumped the livestock business’s interest in the livestock. The court applies Arizona state law (per the choice of law provision in the leases) and determines that the agreements are true leases—not security agreements—because they lacked an option for the dairy farmer to purchase the livestock. Judge Drain dissents, stating the “leases” should be considered security agreements because the economic life of the individual heads of cattle would not last the term of their lease. Opinion below.
2014-08-14 – in re purdy