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910 Car Claim Creditors

Wachovia Dealer Servs. v. Jones

Secured creditors with liens on vehicles purchased within 910 days of the petition date filed objections to confirmation of plans where debtors made the suggestion of paying the contract balance without paying the interest throughout the plan. The bankruptcy court decided that a car claim does not constitute an "allowed secured claim."

The Tenth Circuit overruled the decision stating that 910 car claim creditors are entitled to interest payments in order to ensure they receive the present value of their secured claims.

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