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5 Hastings Bus. L.J. 401 (2009)
Should Courts Hang on Every Word of Congress's Hanging Paragraph - A Solution to Judicial Controversy Over Chapter 13 Surrendered Vehicles

handle is hein.journals/hbuslj5 and id is 413 raw text is: 






SHOULD COURTS HANG ON EVERY

WORD OF CONGRESS'S HANGING

PARAGRAPH? A SOLUTION TO

JUDICIAL CONTROVERSY OVER

CHAPTER 13 SURRENDERED

VEHICLES

Netta Grutman*

                         I. INTRODUCTION

     As part of the Bankruptcy Abuse Prevention Consumer Protection
Act of 2005, Congress added a paragraph to the bankruptcy code governing
the confirmation of Chapter 13 plans.' This addition has led to the recent
confusion about how courts should approach claims secured by vehicles
that are surrendered as part of the debtor's Chapter 13 plan.2 This
confusion has led to a nation wide circuit split as well as majority and
minority  approaches  to  the  controversy.3   This  modem    dilemma
undoubtedly challenges the law's pursuit of predictability, stability, and
logic.
     Too often lawyers complicate intuitive and simple concepts with

     * J.D. Candidate, University of California, Hastings College of the Law, 2010; Bachelor of Arts,
Economics, Minor in Psychology, University of California, Davis, 2006. This Note is dedicated to the
memory of Naomi Shacham. I want to thank Judge Kathleen Thompson for her wisdom, advice and
insightful comments on earlier drafts; Jessica Flynn, Megan Johnson, Anne Knight and Kara Shacket
for their skillful editing; and Damon Nakamura and Dominic Signorotti for seeing this effort to a close.
Special appreciation to my legal guru, mentor and friend Yoni Cohen; Ehud Gersten for sharing the
strategy to success in law school, and Bita Neyestani whose constant moral support and unfailing
humor have made my high school, undergraduate, and law school years manageable. Finally, I thank
my parents and beautiful sister, Naum, Nava, and Nilli Grutman for their endless love, support, and
encouragement.
    1. Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, §
306(b), 119 Stat. 23, 80 (2005).
    2. Capital One Auto Finance v. Osborn, No. 07-1726, 2008 WL 304750 at *819 (8th Cir. Feb. 5,
2008).
    3. Id.


HASTINGS BUSINESS LAW JOURNAL

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