- 11 U.S.C.
In re Mayland
May
26
2006
Ruling
Court ruled that section 506(a)(2) and thus replacement value provided standard for valuing vehicle for redemption purposes in both chapter 7 and chapter 13 cases.
Procedural posture
The debtors moved for authority to redeem their vehicle for $12,125. The creditor objected. The debtors argued that the proper valuation standard was the replacement value of the vehicle, which they computed by taking 90 percent of the retail value for the vehicle listed by the National Automobile Dealers Association ("NADA") Official Used Car Guide. The creditor argued that the replacement value was the full retail NADA value, which was $13,900.
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Court
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