The debtor filed for Chapter 13 bankruptcy and objected to the creditor’s secured claim for the debtor’s household goods—a fireplace, microwave, and a leaf blower—based on a “Retail Installment Sales Agreement” attached to the proof of claim. The debtor argued that the court should reclassify the claim as an unsecured claim because the creditor failed to provide documentation indicating that a security interest existed and had failed to file a financing statement with the secretary of state. The debtor previously contested the security interest; however, the court denied the objection and held that the debtor had provided no basis for the objection. The debtor had failed to overcome the claim’s presumption of validity, and the debtor had not addressed whether the creditor properly perfected the claim under Ohio law. The debtor filed a second objection and continued to argue that, without a filed financing statement, the creditor’s interest was unperfected and therefore invalid.
In In re Dews, No. 25-30191, 2025 WL 3265032, 2025 Bankr. LEXIS 3073 (Bankr. S.D. Ohio Nov. 20, 2025) (opinion not yet released for publication), the court denied the debtor’s objection without prejudice, holding that a purchase-money security interest (PMSI) in consumer goods automatically perfected upon attachment, which “occurs upon execution of the security agreement.” See Ohio Rev. Code § 1309.203. Because the PMSI perfected automatically under Ohio law, the creditor did not need to file a financing statement. The court defined consumer goods as “goods that are used or bought for use primarily for personal, family, or household purposes.” R.C. § 1309.102(A)(23). The court emphasized that the debtor presented no evidence that the fireplace, microwave, and leaf blower were not consumer goods, and under Ohio law, the absence of a financing statement does not invalidate a PMSI. Furthermore, the debtor made no allegations that they purchased those items for anything other than personal use. Therefore, the court denied the debtor’s second objection.
Eds. Note: This ruling is consistent with Article 9 of the U.C.C. as generally adopted.
By Charlie Cole [email protected]
Edited By Olivia Lewis [email protected]
Edited By Landon Womack [email protected]
Edited By Taylor O’Brien [email protected]