This post assumes familiarity with my last three posts (Part 1, Part 2, and Part 3) this multi-part series. Thus, while you can certainly read this post without reading those previous ones, you’ll get more out of it if you read those posts first.
We have already discussed motions to value liens. What good are they?
First, if the goal is to strip off a wholly unsecured junior lien, it is important to establish that the junior lien really is wholly unsecured. Therefore, getting a determination of the value of the senior lien(s) and an appraisal of the property is necessary to establishing the wholly unsecured status of the lien to be stripped.
Second, if the goal is to bifurcate the lien, one must have accurate values of the lien, any senior liens, and the property to get accurate values of the secured and unsecured portions.
Third, if the goal is to negotiate with the creditor, lien valuation fixes one of the starting points for those negotiations.
Continue Reading Lien Avoidance in Individual Cases – Part 4: Lien Valuation