Penrod

Order; Dissent by Judge BEA.

ORDER

Judge W. Fletcher has voted to deny the petition for rehearing en banc, and Judges Goodwin and Mills so recommend.

A judge of the court called for a vote on the petition for rehearing en banc. A vote was taken, and a majority of the active judges of the court failed to vote for en banc rehearing. Fed. R.App. P. 35(f).

Appellant’s petition for rehearing en banc, filed August 30, 2010, is DENIED.

dissenting from the denial of rehearing en banc:

The panel reads Congress’s revisions to the Bankruptcy Code to mean the exact opposite of what the plain language says. In re Penrod, 611 F.3d 1158, 1159 (9th Cir.2010). 1 In doing so, the panel renders the relevant statute, 11 U.S.C. § 1325 (a)(*), completely meaningless. In contrast, each of the other eight circuits 2 *1176 to address this statute have been unwilling to re-write its plain language, and have instead enforced it. Further, by ignoring how automobiles are actually financed, the panel’s revision leaves an already struggling auto industry in perilous waters and affects thousands of commercial transactions each year. Thus finding ourselves on the wrong end of an eight to one circuit split, we respectfully dissent from the denial of rehearing en banc.

I.

This is an appeal from a decision by the Bankruptcy Appellate Panel (“BAP”), affirming a decision by the bankruptcy court confirming Marlene Penrod’s Chapter 13 Plan. Penrod’s reorganization plan listed a debt for a loan made to her for the purchase of a new Ford Taurus automobile. Although the entire loan was secured by the Taurus, she sought to use 11 U.S.C. § 506 of…