In re Sandifer (18-40959)
This case concerns whether the Chapter 13 debtors could cram down a claim secured by a purchase money security interest (PMSI) in a motor vehicle purchased for non-personal use within one year of the petition date. The undesignated paragraph following 11 U.S.C. § 1325(a)(9), often referred to as “the hanging paragraph,” prohibits debtors from cramming down claims secured by a PMSI if purchased within particular time periods. A 910-day limitation applies to claims secured by “a motor vehicle (as defined in section 30102 of title 49) acquired for the personal use of the debtor.” A one-year limitation applies to claims secured by “any other thing of value.” The Court concluded that the first provision applies narrowly to motor vehicles acquired for the debtors’ personal use. All other collateral, including motor vehicles not acquired for the debtors’ personal use, are subject to the one-year limitation provided in the second provision.