Antoinette Dumont v. Ford Motor Credit Company

Opinion by Judge O’SCANNLAIN; Dissent by Judge GRABER.

O’SCANNLAIN, Circuit Judge:

We must decide whether the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 allows a consumer in bankruptcy to retain personal property subject to a security interest by continuing to make payments under his contract.

I

Antoinette Dumont purchased a car in 2003 from Ford Motor Credit Company (“Ford”). The loan agreement contained a clause stating that Dumont would be in default if she was involved in a bankruptcy proceeding, also known as an “ipso facto” clause.1 Dumont filed for Chapter 7 bankruptcy…