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Secured Claims in Bankruptcy

Learn about the general status and special rules applicable to claims in bankruptcy that are secured by collateral.


Oftentimes, a pivotal issue in a bankruptcy case is whether and to what extent a creditor has an allowed secured claim. This question affects a host of other matters arising at each step along the debtor's journey through bankruptcy.

I. Allowed Secured Claim Defined 

In short, if a creditor has an allowed claim, and estate property secures that claim, then the creditor has an allowed secured claim up to the lesser of two amounts. The first is the total allowed amount of the claim. The...