Congress Intended BAPCPAs Cramdown Amendment to Protect Creditors with Purchase-Money Security Interests According to New ABI Poll
Contact: John Hartgen
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.
###ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.