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Russell v. Household Finance Corp.

Citation: 36 B.R. 809Docket: Bankruptcy No. C-B-83-510; Adv. No. 83-0747

Court: District Court, W.D. North Carolina; January 30, 1984; Federal District Court

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The court, presided over by Bankruptcy Judge Marvin R. Wooten, held hearings on January 12 and January 23, 1984, regarding the classification of a creditor in a bankruptcy case involving debtors Jerry E. Russell and Sally W. Russell. Testimony was provided by both debtors and representatives from Oasis Pools, alongside submitted exhibits and stipulations.

Key findings include:

1. The court accepted all stipulations of facts agreed upon by both parties.
2. Oasis Pools advanced cash for hiring a contractor to install a pool, which was appropriately utilized for this purpose.
3. The contractor was independent and not affiliated with Oasis Pools.

Legal conclusions drawn by the court include:

1. The debtors owed Household Finance Corporation $3,668.24 at the time of the bankruptcy petition filing.
2. The pool purchased is classified as a consumer good, including installation fees, under G.S. 25-9-109.
3. Household Finance Corporation holds a purchase money security interest in the pool, as defined by G.S. 25-9-107.
4. This security interest is perfected without the need for a UCC Financing statement, per G.S. 25-9-302(1)(d).
5. Household Finance Corporation's claim is secured by the pool.

The order concludes that Household Finance Corporation's claim related to the pool purchase is validated as a properly perfected purchase money security interest, granting it secured status in the bankruptcy proceedings of the Russells.