Garner v. Garner
663 F.3d 1218
| 11th Cir. | 2011Background
- Garner borrowed $33,848.14 from FUSB in Dec 2008, with a 10.5% contract rate, repayable over 30 months.
- Security interests cover multiple vehicles and equipment securing the debt.
- Garner filed Chapter 13 on Mar 19, 2010; plan values collateral at $33,300 and shows $26,849.10 owed to FUSB; loan is oversecured.
- The plan provides full payment with a prime-plus present value interest rate of 4.25% under Till v. SCS Credit Corp.
- FUSB objected, seeking contract-rate interest (10.5%) post-petition; bankruptcy court partly granted (10.5% post-petition, 4.25% post-confirmation).
- The district court affirmed; this court also affirms the bankruptcy and district court rulings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Scope of 506(b) after confirmation | FUSB seeks contract-rate interest under 506(b) through confirmation and beyond. | Garner contends 506(b) does not apply post-confirmation. | 506(b) does not apply post-confirmation. |
| Interaction of 506(b) and 1325(a)(5)(B) after confirmation | 506(b) pendency interest should be recoverable at contract rate. | Crm-down framework governs; no post-confirmation pendency interest. | No post-confirmation pendency interest; cram-down limits apply. |
Key Cases Cited
- Rake v. Wade, 508 U.S. 464 (1993) (pendency interest accrues from petition through plan confirmation)
- In re Hoopai, 581 F.3d 1090 (2009) (interest accrues only until plan confirmation under 506(b))
- In re Milham, 141 F.3d 420 (1998) (Second Circuit; 506(b) and 1325 interplay; no post-confirmation pendency interest)
- In re T-H New Orleans Ltd. P'ship, 116 F.3d 790 (1997) ( Fifth Circuit on 506(b) limitations and timing)
- Till v. SCS Credit Corp., 541 U.S. 465 (2004) (Tolling/valuation framework for post-petition interest in 13 cases)