In Re Taylor

861 F.2d 550 18 Bankr.Ct.Dec. 836 , Bankr. L. Rep. P 72,526 In re Paul David TAYLOR; Carol Elizabeth Taylor, dba Paul Taylor Logging, Debtors. RAINIER EQUIPMENT FINANCE, INC., Appellant, v. Paul David TAYLOR; and Carol Elizabeth Taylor, Appellees. No. 87-3920. United States Court of Appeals, Ninth Circuit. Submitted Nov. 2, 1988 * . Decided Nov. 9, 1988. Donald R. Murray, Murphy, Robinson, Heckathorn & Phillips, P.C., Kalispell, Mont., for appellant. No appearance, for appellees. Appeal from the Ninth Circuit Bankruptcy Appellate Panel. Before NELSON, BOOCHEVER and BRUNETTI, Circuit Judges. BRUNETTI, Circuit Judge: BACKGROUND 1 Rainier Equipment Finance, Inc. appeals the decision of the Bankruptcy Appellate Panel for the Ninth Circuit, 73 B.R. 149 , which affirmed the Bankruptcy Court for the District of Montana in allowing the debtors in bankruptcy to avoid a nonpossessory, nonpurchase-money security in interest in a logging truck and trailer valued at approximately $50,000. 2 The appellee-debtors filed for Chapter 11 bankruptcy in Montana in 1985. The petition was later converted to Chapter 7 liquidation bankruptcy. At the time of the filing Rainier had a nonpossessory,…