10th Circuit Court of Appeals follows its BAP, Finds in Creditor’s Favor on Negative Equity Issue arising from “Hanging Paragraph” of section 1325(a) of BAPCPA

The 10th Circuit Court of Appeals agreed with its BAP’s recent decision in In re: Padgett and found that the negative equity in a motor vehicle contract was part of the purchase money security interest protected from cram-down under 11 U.S.C. §1325(a).  In re John Wesley Ford, Sr.   (No. 08-3192) (10th Cir. 2009).