United States Sixth Circuit

In a bankruptcy case involving a debtor's proposal to surrender a car to creditor-finance company as part of a Chapter 13 plan, a bankruptcy court's determination that the surrender of the car would completely wipe out debtor's remaining indebtedness (which was greater than the value of the car) is reversed and remanded where, contrary to the ruling below, a gap in a recent revision of the Bankruptcy Code intended to benefit creditors should be filled with the law previously governing such situations.

Appellate Information

• Decided 03/04/2008
• Published 03/04/2008

Judges

• Before:  MERRITT and CLAY, Circuit Judges;  COX, District Judge.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Stephen P. Hale, Hale, Dewey & Knight, Memphis, Tennessee, for Appellant.  John P. Newton, Jr., Mayer & Newton, Knoxville, Tennessee, for Appellees.   ON BRIEF:  Stephen P. Hale, Hale, Dewey & Knight, Memphis, Tennessee, Holly N. Knight, Hale, Dewey & Knight, Nashville, Tennessee, for Appellant.  John P. Newton, Jr., Richard M. Mayer, Brent S. Snyder, Mayer & Newton, Knoxville, Tennessee, for Appellees.  Tara A. Twomey, San Jose, California, Richardo I. Kilpatrick, Kilpatrick & Associates, Auburn Hills, Michigan, Joseph R. Prochaska, Williams & Prochaska, Nashville, Tennessee, for Amici Curiae.