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Congress Intended BAPCPAs Cramdown Amendment to Protect Creditors with Purchase-Money Security Interests According to New ABI Poll

Contact: John Hartgen
             (703) 739-0800
             jhartgen@abiworld.org

 
CONGRESS INTENDED BAPCPA’S CRAMDOWN AMENDMENT TO PROTECT CREDITORS WITH PURCHASE-MONEY SECURITY INTERESTS, ACCORDING TO NEW ABI POLL

October 2, 2006, Alexandria, Va. —The majority of respondents (76 percent) in a recent American Bankruptcy Institute online poll agreed that Congress’ intent for the anti-cramdown amendment to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was to protect creditors with purchase-money security interests. Sixty percent of respondents “strongly agreed” and another 16 percent “somewhat agreed” that Congress’ intent in BAPCPA’s anti-cramdown amendment was to protect creditors with purchase-money security interests, and therefore does not extend protection to nonpurchase-money security interests.

Eleven percent disagreed that Congress intended BAPCPA’s anti-cramdown amendment to protect creditors with purchase-money security interests and not those with nonpurchase-money security interests. Three percent of respondents “somewhat disagreed,” while 8 percent “strongly disagreed” that Congress intended to protect creditors’ purchase-money security interests by including the anti-cramdown amendment in BAPCPA. Twelve percent did not know or had no opinion.

ABI members and members of the public were welcome to submit their response to the statement: “Congress' intent in BAPCPA's anti-cramdown amendment was to protect creditors with purchase-money security interests and therefore does not extend protection to nonpurchase-money security interests.”  The latest ABI Quick Poll that was open for voting from Sept. 21-28.

ABI’s weekly Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.

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