In re Townsend; Case No. 07-20956-13 (Somers) (April 3, 2008)
• 11 U.S.C. § 506
•
11 U.S.C. §1325
Facts:
On April 25, 2006 Debtor purchased a vehicle from Marcus Allen Broadway Ford, Inc. Wells Fargo provided the financing for the purchase. Under the contract, the debtor was required to maintain property insurance on the vehicle satisfactory to Wells Fargo. If the debtor failed to maintain property insurance or Wells Fargo was not satisfied with the debtor’s insurance, Wells Fargo could purchase the property insurance at the expense of the debtor. In late 2006, Wells Fargo received notice that the debtor’s property insurance had lapsed and Wells Fargo purchased property insraunce from January 1, 2007 through April 30, 2007 for a total of $1,515.46. That amount was added to the principal of the debtor’s note. Debtor filed for Chapter 13 relief on May 8, 2007, within 910 days of purchasing the vehicle. Wells Fargo filed a proof of claim for $25,064.89 and the debtor objected asserting, among other things, that Wells Fargo was not entitiled to the $1,515.46 in forced-placed insurance.
Holding:
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