Capital One Car Lien Released; Lien Was Modified, Not Crammed Down

A bankruptcy court did not err in releasing a lien on a Chapter 13 debtor’s car after the creditor’s loan had been permanently modified under the plan, the U.S. District Court for the Eastern District of Michigan held July 29 (Capital One Auto Fin. Inc. v. Bolden (In re Bolden), E.D. Mich., 2:12-cv-14979-VAR-PJK, 7/29/13).

Judge Victoria A. Roberts found that despite the creditor’s claim that the debt had been crammed down pursuant to Section 1325(a)(5) of the Bankruptcy Code, the plan was unambiguous in describing the debt as “modified” under Section 1322(b)(2).

Modified Loan, Interest Rate.

On ...