south carolina Tag

09 Nov South Carolina Bankruptcy Lawyer Unleashes Vulcan Intellect on the Hanging Paragraph

Dennis Toney's Hand In a move that shocked and amazed the South Carolina bankruptcy community, attorney Dennis Toney of Charleston scored a big victory for his clients by successfully challenging the application of the 910-day rule. Toney's keen analysis has led some to question whether Toney is part Vulcan, or 100% human as previously thought. An investigation is ongoing. It all started with a fairly routine Chapter 13 filing in the Charleston division (In re Brown, Case No. 09-03846). Toney's clients, Harold and Gertrude Brown, proposed to "cram down" Mr. Brown's 2007 Toyota Camry. A cram down occurs when the secured creditor will only be paid the value of its collateral, rather than the entire balance owed on the loan. In this case Mr. Brown owed $21,788 on the vehicle, but he proposed to pay only $15,375--the value of the vehicle--to Regions Bank on its secured claim. The cram down provision called for separation of the claim into two parts: a secured claim in the amount of $15,375 to be paid with interest, and an unsecured claim in the amount of $6,414. The unsecured claim would receive only a small percentage of the total claim, and no interest. Predictably, the bank objected to confirmation of the plan. The problem with Toney's proposed plan was that the valuation of the vehicle seemed to be prohibited by the 910-day rule, which is part of the new 2005 bankruptcy law.
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