In re Paschal (19-70879)

Creditor Nissan moved for relief from stay against Debtor and objected to Debtor’s confirmation plan. Nissan alleged that the transaction between Nissan and Debtor for the vehicle was a true lease and, additionally, that Debtor’s plan lacked sufficient adequate protection. Debtor, in response, argued that the lease was not a true lease and instead was a disguised security agreement. The Court found the lease to be a true lease and granted the motion for relief from stay; the Court also agreed that the offered adequate protection was insufficient and sustained Nissan’s objection to confirmation.

Tuesday, August 11, 2020