Nuvell Credit Co. v. Muldrew (In Re Muldrew)

MEMORANDUM AND ORDER REVERSING THE BANKRUPTCY COURT’S DECISION AND REMANDING FOR FURTHER CONSIDERATION

AVERN COHN, District Judge.

I. Introduction

This is a bankruptcy appeal in relation to Article 9 of the Uniform Commercial Code (“UCC”). The case itself presents a novel question at the intersection of the Bankruptcy Code and “negative equity” in motor vehicle financing, an issue that has been reviewed by only six district courts and one circuit court, the Eleventh. Nu-vell Credit Company LLC (“Nuvell”) appeals the bankruptcy court’s ruling that negative equity on a trade-in vehicle is not part…