In re Bufford, 343 B.R. 827 (Bkrtcy.N.D.Tex. 2006)

Creditor holding PMSI in debtor's vehicle remains secured and entitled to "till" rate of interest under §506 SEE: BAPCPA §§ 1325(a)(5), 101(37), 502, 506) Debtor's proposed chapter 13 plan assumed that since car loan was a PMSI acquired for personal use within 910 days of filing petition, the debt could not be deemed a "secured claim" under § 506 and hence was entitled to interest of only 6.5%, while creditor argued that anti-cramdown provision also prevented modifying their secured status and prevented modification of the contractual interest rate of 17.9%. The court ruled that although the anti-cramdown language of § 1325(a) does not remove the claim from its secured status because secured status is determined by § 502, not § 506, and the anti-cramdown language protects the PMSI from cramdown, it does not prevent modification of the interest rate. Court ruled with the weight of authority that the interest rate is the "formula rate" provided by Supreme Court in Till v. SCS Credit Corp., 124 S.Ct. 1951 (2004); "The formula rate begins with the national prime rate and adjusts upward based on several factors, including the 'circumstances of the estate, the nature of the security, and the duration and feasibility of the plan.'" The court cited cases holding that the Till rate applies to "910" claims, including: In re Pryor 341 B.R. 648 (Bkrtcy.C.D.Il. 2006); In re DeSardi, 340 B.R. 790 (Bkrtcy.D.D.Tex. 2006); In re Brown, 339 B.R. 822 (Bkrtcy.S.D.Ga. 2006); In re Fleming, 339 B.R. 716 (Bkrtcy.E.D.Mo. 2006); In re Wright, 338 B.R. 917 (Bkrtcy.M.D.Ala. 2006); In re Robinson, 338 B.R. 70 (Bkrtcy.W.D.Mo. 2006); In re Johnson, 337 B.R. 269 (Bkrtcy.M.D.N.C. 2006).