Order Granting Motion To Value Collateral And To Avoid Security Interest (Ch 13) {LBF L}

LBF-L - ORDER GRANTING MOTION TO VALUE COLLATERAL AND TO AVOID SECURITY INTEREST. This form is used in Chapter 13 bankruptcy proceedings in the United States Bankruptcy Court for the District of Maryland. This form is employed when a debtor files a motion under 11 U.S.C. § 506 to determine the value of certain collateral—real or personal property that is not the debtor’s principal residence—and to avoid the portion of a creditor’s lien that exceeds the value of that collateral. Once the court reviews the motion and any responses and finds that proper notice has been given, the order establishes the fair market value of the collateral. It then reclassifies the creditor’s claim: the portion up to the value of the collateral is treated as a secured claim, while any remaining debt is treated as a general unsecured claim. The order further provides that the lien is avoided (i.e., rendered unenforceable) with respect to the unsecured portion once the debtor either completes their Chapter 13 plan or receives a discharge. This order ensures that the debtor’s plan accurately reflects the secured and unsecured status of debts tied to non-residential property, and must be submitted in compliance with Local Bankruptcy Rules 3012-1 and 9013-3. www.FormsWorkflow.com