A panel of the 10th Circuit on May 19 said a lender was entitled to pursue claims against two groups of debtors related to the surrender of vehicles under the Hanging Paragraph of the Bankruptcy Code.
The decision was a reversal of the Bankruptcy Court for the Northern District of Oklahoma which had approved two separate plans regarding so-called "910 Vehicles."
Lender DaimlerChrysler had objected to the confirmation of the payment plan of John Jason and SUmmar baller, as well as that of Michael Justin Quick.
The debtors had argued that the Hanging Paragraph created a "fiction" that the 910 Vehicle is worth the exact amount of the balance on the loan.
The 10th Circuit panel disagreed and said the debtors' interpretation of the Bankruptcy Code was "unconvincing."