Texas Bankruptcy Court Requires "Cramdown" Of Cross-Collateralized Credit Union Car Loans

LexisNexis (April 26, 2017, 1:50 PM EDT) -- In a notable recent decision, a Texas bankruptcy court has ruled that several motor vehicle loans cross-collateralized with two personal motor vehicles of the Chapter 13 debtors were subject to "cramdown" and were not protected by the "hanging paragraph" found in Section 1325 of the Bankruptcy Code. The key to the court's ruling was that the secured lender (a credit union) was not protected from cramdown because the lender did not have any "purchase-money security interests" based on the cross-collateralization.  In re McPhilamy, 91 UCC Rep....
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