Vehicle Payments under a Chapter 13 Plan Must Include Interest According to Latest ABI Poll
Vehicle Payments under a Chapter 13 Plan Must Include Interest According to Latest ABI Poll
Contact: John Hartgen
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VEHI
July 16, 2007, Alexandria,
Va. —A majority of respondents (60 percent) to
Twenty-seven percent of respondents, however, did not agree that interest should be included within the installment payments laid out in a chapter 13 plan for a vehicle purchased by a debtor within 910 days of filing. Twenty percent “strongly disagreed” and 7 percent “somewhat disagreed” that the interest payments should not be included in the vehicle installment payments of a chapter 13 debtor. Ten percent of the respondents did not know or had no opinion on the issue.
The poll question is based on a March decision by the Sixth Circuit Court of Appeals that reversed a bankruptcy court’s ruling in the case of Daimler Chrysler Services North America LLC v. Taranto. In that case, the court stated that a chapter 13 plan that proposes periodic installment payments to a creditor secured by a debtor’s vehicle purchased for personal use within 910 days of the debtor’s bankruptcy filing must also provide for payment of the interest.
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