LexisNexis (October 26, 2018, 12:04 PM EDT) -- In a recent decision from the State of Washington, a bankruptcy court has ruled that, when a consumer buys a car through a dealer installment contract that is assigned to a third-party financer, the purchase of ancillary products such as gap insurance and extended warranty protection are not “purchase-money obligations” that are protected from cramdown in the debtor’s Chapter 13 bankruptcy. In reaching its decision, the court relied heavily on a leading Ninth Circuit case that refused to protect “negative equity” that was financed by the dealer in connection with the debtor’s trade-in on a new vehicle....