In Re Velez

MEMORANDUM OPINION AND ORDER GRANTING DEBTOR’S MOTION TO MODIFY INTEREST RATE OF SECURED CLAIM

MARTIN GLENN, Bankruptcy Judge.

This case raises the issue whether a debtor, as part of a proposed chapter 13 plan, may modify the contract interest rate payable on an allowed secured claim for a so-called “910-vehicle” that is subject to the so-called “hanging paragraph” of section 1325 of the Bankruptcy Code. The debtor concedes that the principal amount of the secured claim must be paid in full, but argues that the contract interest rate may be modified to the “Till” interest rate. For the reasons…