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In re Short

United States Bankruptcy Court for the Southern District of Illinois
170 B.R. 128, 24 U.C.C. Rep. Serv. 2d 1020 (1994)


Robert and Dawn Short (plaintiffs) bought furniture from Anderson Warehouse Furniture (Anderson) on credit, and the Shorts gave Anderson a security interest. Anderson assigned its interest to American General Finance, Inc. (American). The Shorts failed to make payments. Later, the Shorts consolidated the $2,880 owed with another loan and executed a new note. The disclosure statement indicated that American held a “continued purchase money interest” in the furniture. The Shorts made payments totaling $394.38 before seeking Chapter 7 bankruptcy. The Shorts sought to avoid American’s lien and exempt the furniture from the bankruptcy estate.

Rule of Law


Holding and Reasoning (Meyers, J.)

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