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Associates Commercial Corporation v. Rash

United States Supreme Court

520 U.S. 953 (1997)

Relevant factsFree

Rash (defendant) sought to retain his truck under a Chapter 13 cramdown plan, valuing it at its lower foreclosure/sale value ($28,500) rather than replacement value; ACC (plaintiff), the secured creditor, argued the truck should instead be valued at what Rash would have to pay for a comparable replacement vehicle, and the lower courts sided with Rash based on the foreclosure-value standard.

IssueFree

Whether, where a debtor seeks to retain and use a secured creditor's collateral under the Chapter 13 cramdown provision of the Bankruptcy Code, the value of the collateral should be the amount that the creditor would receive through foreclosure and sale of the collateral.

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