Sears, Roebuck & Co v. Anderson (In re Anderson)
Docket: Adv. No. 3-81-0518; Bankruptcy No. 3-80-01992
Court: United States Bankruptcy Court, S.D. Ohio; January 11, 1982; Us Bankruptcy; United States Bankruptcy Court
The case involves a complaint regarding the modification of the Debtors’ Plan, filed by Rolfe F. Anderson and Shirley A. Anderson, which seeks to reduce the claim of Sears, Roebuck Company from $2,700.62 to a secured claim of $500.00 based on the alleged value of collateral. Evidence presented at a hearing revealed varying valuations of custom draperies, originally purchased for $2,000.00, with a current fair market value estimated by the Plaintiff at $1,244.00 and by a Defendant's expert at $500.00. The Court found that the primary dispute lies in the appropriate valuation method for the collateral, emphasizing that the value should reflect its special use to the Debtors rather than a generic market sale. Citing 11 U.S.C. 1325(a)(5)(B)(ii) and 11 U.S.C. 506(a), the Court concluded that the collateral should be valued based on its amortized worth considering its useful life. The Court determined a reasonable secured value of $1,000.00 for the draperies, allowing the Debtors two options: to pay this amount with a 12% interest rate or to allow Sears to repossess and sell the draperies, thereby discharging their debt.