Circuit split · bankruptcy law
Whether collateral a debtor retains is valued at fair-market value or foreclosure value under 11 U.S.C. § 506(a)
1 federal appellate case on this question, each acknowledging the disagreement in its own words.
- Taffi v. United States68 F3D 306
Ninth Circuit Court of Appeals · October 10, 1995
“We will not extend Mitchell to the facts of this case with a resulting intercircuit conflict.” — Split of authority
Empirical analysis of this case →
The provision at issue
11 U.S.C. § 506 — Determination of secured status
“(a) (1) An allowed claim of a creditor secured by a lien on property in which the estate has an interest, or that is subject to setoff under section 553 of this title , is a secured claim to the extent of the value of such creditor’s interest in the estate’s interest in such property, or to the extent of the amount subject to setoff, as the case may be, and is an unsecured claim to the extent that the value of such creditor’s interest or the amount so subject to setoff is less than the amount of such allowed claim. Such value shall be …”Read the full section →
The other side of the split
Decisions the acknowledging court(s) named as the opposing or joined side, quoted in the acknowledging opinion's own words.
- Declined to follow · 9th Cir.In re Mitchell954 F.2d 557
“In Mitchell, the assignee of an automobile seller who had financed the debtor’s automobile purchase filed a claim as a secured creditor in the debtor’s Chapter 13 ease.” — Taffi v. United States, acknowledging the split
- Discussed · 9th Cir.United States v. Chavez-Vernaza844 F.2d 1368
What the split turns on
- Statutes:
- 11 U.S.C. § 506(a)
- Doctrines & tests:
- cautionary rule counseling against creating intercircuit conflicts
Cases are grouped by the legal question they announce a split on, classified from the court's own acknowledgment sentence. Verified acknowledgments only. Counter-side decisions are extracted from the acknowledging opinions' own text and linked only when the citation resolves in this corpus. See all circuit splits.