In re Bell

700 F.2d 1053 (1983)

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In re Bell

United States Court of Appeals for the Sixth Circuit
700 F.2d 1053 (1983)

Facts

Thomas and Margaret Bell (debtors) were in Chapter 7 bankruptcy. The Bells wished to redeem certain personal property that served as loan collateral. Bankruptcy Code (code) § 722 permitted the Bells to do so by paying the lesser of the property’s fair market value or the amount of the lender’s claim regarding the property. However, the Bells did not have the money to make a lump-sum redemption payment. Instead, the Bells proposed redeeming the property via installment payments. The Bells contended that permitting installment redemption payments was necessary to avoid leaving some cash-poor Chapter 7 debtors unable to redeem their property.

Rule of Law

Issue

Holding and Reasoning (Krupansky, J.)

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