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IN RE PALMER

Bankruptcy Nos. 590-50021-13, 590-50143-13.

123 B.R. 218 (1991)

In re Glen Roy PALMER and wife, Glenda Jo Palmer, Debtors. In re Jimmy Everett VOYLES and wife, Bonnie Lou Voyles, Debtors.

United States Bankruptcy Court, N.D. Texas, Lubbock Division.

January 22, 1991.

Attorney(s) appearing for the Case

Tom R. King, Law Offices of Tom R. King, Lubbock, Tex., for debtors.

Kent Hale, Carr, Evans, Fouts, Craig, Terrill & Wolfe, Lubbock, Tex., for Heath Furniture.

Robert B. Wilson, Trustee-in-Bankruptcy, Lubbock, Tex., chapter 13 trustee.

MEMORANDUM OF OPINION ON VALIDITY OF LIENS

JOHN C. AKARD, Bankruptcy Judge.

The question presented in these cases is whether a retail installment contract for household goods which refinances unpaid balances on prior contracts destroys the purchase money security interest character of the goods purchased under the prior contracts. If the goods purchased under prior contracts no longer retain their purchase money character, the Debtor can avoid the lien under...

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