21st Mortgage Corp. v. Glenn

Under Section 506(a) of the Bankruptcy Code, delivery and setup costs should not be included in the valuation of a retained mobile home in a Chapter 13 proceeding. The Fifth Circuit affirmed the district court's judgment in a Chapter 13 bankruptcy action where the bankruptcy plan allowed her to retain her mobile home and pay 21st Mortgage the secured value (plus 5% interest) over the life of the plan. The court held that, in light of the statutory requirements and the Supreme Court's determination that the "proposed disposition or use" of collateral is crucial to its valuation, delivery and setup costs must not be included in the valuation of a retained mobile home under section 506(a). Therefore, the court held that the delivery and setup costs should not be included in debtor's mobile home valuation. View "21st Mortgage Corp. v. Glenn" on Justia Law