In re Carver (GASB 05-51909)

Claims falling within the scope of the hanging paragraph to § 1325(a) are not secured claims for purposes of treatment under § 1325(a)(5). However, because Congress did not intend to punish such claimholders, the claims must receive the greater of (1) the full amount of the claim without interest; or (2) the amount the creditor would receive if the claim were bifurcated and crammed down.

Monday, March 6, 2006