## Facts

- A Chapter 13 debtor obtained a Wells Fargo “Home Projects Visa” credit card whose terms granted Wells Fargo a purchase-money security interest (PMSI) in items purchased with the card.
- The debtor used the card to purchase six replacement windows for her Kansas homestead; the transaction included installation, and the windows were installed in the home.
- The charge slip stated: “You agree that any property described in this charge slip will remain personal property and will not become a fixture even if attached to real property.”
- The card terms also indicated Wells Fargo would not claim a lien on the debtor’s principal dwelling, making the characterization of the windows as personal property versus fixtures significant.
- About four years later, the debtor filed Chapter 13; Wells Fargo filed a proof of claim asserting secured status based on its interest in the windows.
- The debtor objected, arguing the windows became fixtures and Wells Fargo had no enforceable (or perfected) interest in fixtures.
- The parties stipulated to the material facts, leaving legal questions of classification and secured status for decision.

## Issues

1. Under Kansas law, did the installed replacement windows become fixtures (part of the real property) or remain personal property?
2. What effect does an express agreement that installed goods “will remain personal property” have on fixture classification?
3. If the windows remained personal property, did Wells Fargo hold a valid PMSI supporting a secured claim in the Chapter 13 case?

## Decision

- The court overruled the debtor’s objection to Wells Fargo’s secured claim.
- Applying Kansas fixture law, the court held the windows did not become fixtures and instead remained personal property.
- Because the windows were personal property, Wells Fargo’s PMSI was valid and enforceable, and its claim was allowed as secured.

## Legal Principles

- Kansas determines fixture status using a three-part test: (1) annexation to realty, (2) adaptation to the realty’s use, and (3) intent that the item become a permanent part of the real estate.
- Intent is the dominant factor in Kansas fixture analysis and may be shown by express contractual language and surrounding circumstances.
- Parties may agree that goods attached to real property will remain personal property; clear written agreement strongly supports a finding of non-fixture status.
- A creditor’s PMSI in consumer goods may be perfected without filing when the collateral remains personal property, supporting secured claim treatment in bankruptcy claims allowance.

## Conclusion

The court treated the replacement windows as personal property based on the parties’ express written agreement, rejected the debtor’s fixture characterization, and allowed Wells Fargo a secured claim grounded in its purchase-money security interest in the windows.


In re Dalebout, 454 B.R. 158 (Bankr. D. Kan. 2011)