Santander Wins Appeal of Consumer Borrower’s Bankruptcy Plan

A US-based consumer financing arm of Banco Santander SA won an appeal overturning the Chapter 13 bankruptcy plan of a borrower who became ineligible for a debt discharge.

The US Bankruptcy Court for the Northern District of Ohio erred by confirming a Chapter 13 bankruptcy plan for Sharenne Tucker over the objection of Santander Consumer USA Inc. because the plan didn’t pay the lender’s $36,000 secured claim against Tucker in full, the US Bankruptcy Appellate Panel of the Sixth Circuit said in a ruling Monday.

Tucker was prohibited by bankruptcy rules from obtaining a debt discharge in her Chapter 13 ...