Hanging Paragraph, Cars for Non-Personal Use, and PMSI

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By Gretchen Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina

The hanging paragraph of § 1325(a)(9) prevents bifurcation of a PMSI claim if the collateral securing it was purchased within certain time periods prepetition. A 910-day limitation applies to motor vehicles acquired for the debtor’s personal use. A one-year limitation applies to all other PMSI collateral, including a vehicle purchased for non-personal use. In re Sandifer, 603 B.R. 648 (Bankr. M.D. Ga. July 17, 2019)

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