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February 19, 2010

Surrender in Full Satisfaction

Filed under: Uncategorized — admin @ 10:33 am

In re Tompkins, 391 B.R. 560,563-64 (Bankr. S.D.N.Y. 2008) (Morris) (Reaffirming//? rePinti, 363 B.R. 369 (Bankr. S.D.N.Y. 2007), and rejecting contrary decisions from Fourth, Sixth, Seventh, Eighth and Tenth Circuits, 910-day PMSI car can be surrendered in full satisfaction because bankruptcy law, not state law, determines there is no unsecured deficiency claim when debt is fully secured under hanging sentence. “This Court’s decision in Pinti addressed and rejected arguments that the right to an unsecured deficiency claim is determined by state law, as opposed to the Bankruptcy Code…. Although other courts have disagreed, they have done so based upon arguments that this Court considered and rejected in Pinti. . . . [T]he ‘hanging paragraph’ appears to be a ‘qualifying or contrary provision’ to the general principles set forth in [Travelers Casualty & Surety Co. v. Pacific Gas & Electric Co., 549 U.S. 443,127 S. Ct. 1199,167 L. Ed. 2d 178 (2007),] and [Butner v. United States, 440 U.S. 48, 99 S. Ct. 914, 59 L. Ed. 2d 136 (1979)].”).

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