In Re Whipple

OPINION

THOMAS L. PERKINS, Chief Judge.

Negative equity in a trade-in vehicle rolled over into a purchase money loan gives rise to an issue of statutory construction regarding the hanging paragraph. Most courts use state law to define “purchase money security interest.” This Court agrees with the minority position that Congress intended the hanging paragraph to be interpreted as a matter of federal law so that “purchase money security interest” is accorded a uniform federal definition.

In their Second Amended Chapter 13 Plan, the Debtors, David and Sally Whipple (DEBTORS), propose to strip down…