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In re Blanco, 06-13223

In re Linda J. Blanco
Issued: March 12, 2007
Judge: John H. Squires

Chapter 13 Debtor could not force its auto-finance company to accept the financed vehicle in full satisfaction of its obligations even though there was a deficiency remaining after sale of the vehicle. The anti-cramdown language of BAPCPA 1325(a)(9) allows Debtors to keep property they continue to pay for or surrender property they don’t — but does not allow Debtors to keep property despite not paying its full value; in that case the Creditor may pursue its State Court remedies including liquidation and pursuit of a deficiency judgment.

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