In Re Maldonado

ABRAHAMS, Bankruptcy Judge.

The debtor appeals from an order allowing a claim as secured for the value of the collateral. We hold that California’s Un-ruh Act creates an election of remedies so that a creditor loses all significant rights in the collateral by obtaining judgment for the value of household furnishings. We therefore reverse.

Background

The facts are agreed. The debtor-appellant bought carpeting for his home from appellee John Breuner Company (Breuners) and gave a security agreement for the unpaid balance of the purchase price. When the debtor failed to make his payments, Breuners…