2012 US Code
Title 11 - Bankruptcy
Appendix (rules 1001 - 9037)
FEDERAL RULES OF BANKRUPTCY PROCEDURE (rules 1001 - 9037)
Part III - CLAIMS AND DISTRIBUTION TO CREDITORS AND EQUITY INTEREST HOLDERS; PLANS (rules 3001 - 3022)
Rule 3012 - Valuation of Security
Publication Title | United States Code, 2012 Edition, Title 11 - BANKRUPTCY |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 11 - BANKRUPTCY TITLE 11 - APPENDIX FEDERAL RULES OF BANKRUPTCY PROCEDURE PART III - CLAIMS AND DISTRIBUTION TO CREDITORS AND EQUITY INTEREST HOLDERS; PLANS Rule 3012 - Valuation of Security |
Contains | rule 3012 |
Date | 2012 |
Laws in Effect as of Date | January 15, 2013 |
Positive Law | Yes |
Disposition | standard |
Source Credit | As amended Mar. 30, 1987, eff. Aug. 1, 1987. |
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The court may determine the value of a claim secured by a lien on property in which the estate has an interest on motion of any party in interest and after a hearing on notice to the holder of the secured claim and any other entity as the court may direct.
(As amended Mar. 30, 1987, eff. Aug. 1, 1987.)
Notes of Advisory Committee on Rules—1983Pursuant to §506(a) of the Code, secured claims are to be valued and allowed as secured to the extent of the value of the collateral and unsecured, to the extent it is enforceable, for the excess over such value. The valuation of secured claims may become important in different contexts e.g., to determine the issue of adequate protection under §361, impairment under §1124, or treatment of the claim in a plan pursuant to §1129(b) of the Code. This rule permits the issue to be raised on motion by a party in interest. The secured creditor is entitled to notice of the hearing on the motion and the court may direct that others in the case also receive such notice.
An adversary proceeding is commenced when the validity, priority, or extent of a lien is at issue as prescribed by Rule 7001. That proceeding is relevant to the basis of the lien itself while valuation under Rule 3012 would be for the purposes indicated above.
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