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Bankruptcy | Case Law | Valuation
VALUATION
In re Lynch, 363 B.R. 101 (9th Cir. BAP 2007)
Confirmation of a chapter 13 plan does not implicitly value a debtor’s house. Where the
chapter 13 is converted to chapter 7, house is valued as of the filing of the chapter 13 petition.
CSX Transportation, Inc. v. Georgia State Board of Equalization, --U.S.– (Dec. 4, 2007).
Railroad was entitled to challenge the valuation methods of the state for ad valorem tax
purposes. No one single valuation method is typically used in arriving at market value. Where
there is little market for an asset, the more difficult the estimate.
In re Kim, 130 F.3d 863 (9th Cir. 1997)
Laundry equipment should have been valued based on its FMV on location and in use, even
though debtors could not have sold business as a turnkey operation because the creditor had a
security interest in the lease.
Associates Commercial Corp. v. Rash, 519 U.S. 1106 (1997)
Property that a debtor seeks to retain over the objection of an under secured creditor is
valued for the purpose of establishing the secured portion of the claim at “replacement value” rather
than at “foreclosure value”. Section 506(a) requires valuing the claim at “the price a willing buyer
in the debtor’s trade, business, or situation would pay to obtain like property from a willing seller.”
Taffi v. United States (In re Taffi), 68 F.3d 306 (9th Cir. 1995), cert. denied, 521 U.S. 1103 (1997)
Where Chapter 11 debtor proposes to retain his home in his Chapter 11 plan, and liens
exceeded home’s value, court must value the allowed amount of secured claim under §506(a):
(1) on basis of fair market value of collateral (willing buyer and willing seller), not forcedsale
liquidation value; and
(2) without deducting hypothetical costs of sale.
See Lomas Mortgage USA v. Weise (In re Weise), 980 F.2d 1279 (9th Cir. 1992), vacated on other
grounds, 508 U.S. 958, 113 S.Ct. 2925 (1993)
In re Mitchell, 954 F.2d 557 (9th Cir. B.A.P. 1992), cert. denied, 506 U.S. 908 (1992)
Wholesale blue book value of automobile under 11 U.S.C. §506(a) proper
In re Wolverton Assoc., 909 F.2d 1286 (9th Cir. 1990)
Standard of review.
In re Malody, 102 B.R. 745 (9th Cir. B.A.P. 1989)
Vehicles should be valued at wholesale in Ch. 13 cases.