Chapter 13 Debtor Wins Attorney’s Fees as a Party “Prevailing on a Contract”

By Ansley Owens, Contributing Writer and Intern for the NACTT Academy (Nashville, TN)

A Chapter 13 debtor wins attorney’s fees after the Ninth Circuit Court of Appeals found that she was a party “prevailing on a contract” under California law. In re Penrod, No. 13-16097, 2015 WL 5730425 (9th Cir. Oct. 1, 2015).

In 2005, Marlene A. Penrod (the “Debtor”) purchased a Ford Taurus from a car dealership for $25,000. Since the Debtor still owed $7,000 on her Ford Explorer trade-in, the dealer allowed the Debtor to roll the negative equity . . .

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