Source: https://law.justia.com/codes/us/2012/title-11/chapter-5/subchapter-i/section-506/
Timestamp: 2019-02-21 18:51:59
Document Index: 207985021

Matched Legal Cases: ['§ 506', '§ 501', '§ 501', '§ 506', '§712', '§712', '§448', '§448', '§448']

CREDITORS AND CLAIMS - 11 U.S.C. § 506 (2012) Determination of secured status :: Title 11 - Bankruptcy :: 2012 US Code :: US Codes and Statutes :: US Law :: Justia
Justia US Law US Codes and Statutes US Code 2012 US Code Title 11 - Bankruptcy Chapter 5 - CREDITORS, THE DEBTOR, AND THE ESTATE (§§ 501 - 562) Subchapter I - CREDITORS AND CLAIMS (§§ 501 - 511) Section 506 - Determination of secured status
CREDITORS AND CLAIMS - 11 U.S.C. § 506 (2012)
Subsection (a) of this section separates an undersecured creditor's claim into two parts: He has a secured claim to the extent of the value of his collateral; and he has an unsecured claim for the balance of his claim. The subsection also provides for the valuation of claims which involve setoffs under section 553. While courts will have to determine value on a case-by-case basis, the subsection makes it clear that valuation is to be determined in light of the purpose of the valuation and the proposed disposition or use of the subject property. This determination shall be made in conjunction with any hearing on such disposition or use of property or on a plan affecting the creditor's interest. To illustrate, a valuation early in the case in a proceeding under sections 361–363 would not be binding upon the debtor or creditor at the time of confirmation of the plan. Throughout the bill, references to secured claims are only to the claim determined to be secured under this subsection, and not to the full amount of the creditor's claim. This provision abolishes the use of the terms “secured creditor” and “unsecured creditor” and substitutes in their places the terms “secured claim” and “unsecured claim.”
Subsec. (b). Pub. L. 109–8, §712(d)(1), inserted “or State statute” after “agreement”.
Subsec. (c). Pub. L. 109–8, §712(d)(2), inserted “, including the payment of all ad valorem property taxes with respect to the property” before period at end.
1984—Subsec. (b). Pub. L. 98–353, §448(a), inserted “for” after “provided”.
Subsec. (d)(1). Pub. L. 98–353, §448(b), substituted “such claim was disallowed only under section 502(b)(5) or 502(e) of this title” for “a party in interest has not requested that the court determine and allow or disallow such claim under section 502 of this title”.
Subsec. (d)(2). Pub. L. 98–353, §448(b), substituted “such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title” for “such claim was disallowed only under section 502(e) of this title”.