Collateral Valuation

Value Collateral & Split Claims in Minutes

12 minutes with CaseMark

Run this workflow

Run it in CaseMark

Upload your documents and get a finished work product in minutes. New accounts get $5 free to run their first skill.

12 minutes with CaseMark

What you'll need

Loan and Security Agreements
Appraisals and Valuation Evidence
Bankruptcy Filing Documents

SOC 2 Type II · HIPAA compliant · $5 free credit

Workflow

Overview

CaseMark's Collateral Valuation skill automates the complex process of valuing bankruptcy collateral and bifurcating claims into secured and unsecured portions under 11 U.S.C. § 506. It applies chapter-specific valuation standards, special statutory overrides like the 910-day vehicle rule, and § 506(b) oversecured interest calculations to produce a comprehensive, court-ready analysis.

Valuing bankruptcy collateral and correctly splitting claims into secured and unsecured portions requires navigating chapter-specific valuation standards, special statutory carve-outs, and multiple evidence sources. Attorneys spend hours cross-referencing appraisals, applying the right legal framework, and performing calculations that are prone to error—especially when handling multiple collateral types across different chapters.

CaseMark automates the entire collateral valuation workflow by classifying each asset, selecting the appropriate valuation standard for the applicable chapter, and calculating the precise secured/unsecured bifurcation. The tool flags special rules like the 910-day vehicle provision and computes oversecured interest under § 506(b), delivering a complete analysis that attorneys can review, refine, and file with confidence.

How it works

1. Upload collateral descriptions, loan documents, appraisals, and bankruptcy filing details
2. AI classifies each collateral type and applies the correct chapter-specific valuation standard
3. Review the secured/unsecured bifurcation, special rule overrides, and deficiency calculations
4. Export the completed valuation analysis in your preferred format (DOCX, PDF)

What you get

Collateral Classification & Valuation Source Ranking
Chapter-Specific Valuation Standard Application
Secured vs. Unsecured Claim Bifurcation
910-Day Rule & Special Override Analysis
§ 506(b) Oversecured Interest Calculation
Deficiency Claim Summary

What it handles

Classifies collateral types and ranks valuation sources by reliability
Applies chapter-specific valuation standards (liquidation, replacement, Rash)
Calculates secured vs. unsecured claim bifurcation under § 506(a)
Identifies 910-day vehicle rule applicability and hanging paragraph treatment
Computes § 506(b) oversecured interest, fees, and charges
Generates deficiency claim amounts with supporting analysis

Required documents

Loan and Security Agreements
Promissory notes, security agreements, and UCC filings showing the debt amount, contract rate, and collateral pledged
.pdf, .docx
Appraisals and Valuation Evidence
Professional appraisals, NADA/KBB reports, BPOs, auction comps, or other evidence of collateral value
.pdf, .docx, .xlsx
Bankruptcy Filing Documents
Petition, schedules, and any filed proofs of claim showing the chapter, petition date, and case posture
.pdf, .docx

Supporting documents

Collateral Photos and Condition Reports
Photographs and inspection reports documenting the current condition of the collateral
.pdf, .jpg, .png
Prior Court Orders or Stipulations
Any existing court orders on valuation, adequate protection, or relief from stay that may affect the analysis
.pdf, .docx
Tax Assessments and Public Records
Property tax assessments, title reports, or other public records relevant to real property valuation
.pdf, .docx

Why teams use it

Eliminate hours of manual research by automating collateral classification and valuation source selection

Reduce errors in claim bifurcation with systematic application of § 506(a) standards across chapters

Catch special-rule overrides like the 910-day hanging paragraph that are easy to overlook manually

Produce structured, defensible analyses ready for proofs of claim, plan objections, and valuation motions

Questions

Which bankruptcy chapters does this tool support?

CaseMark's collateral valuation skill supports Chapters 7, 11, and 13, applying the correct valuation standard for each—liquidation value for Chapter 7, replacement value under Rash for Chapter 13, and the appropriate standard for Chapter 11 depending on case posture.

How does the tool handle the 910-day vehicle rule?

CaseMark automatically checks whether a vehicle was purchased within 910 days of the petition date. If the hanging paragraph applies, the tool flags that the full claim is treated as secured and explains the impact on plan treatment and cramdown eligibility.

What types of collateral can be valued?

CaseMark handles real property, vehicles, equipment and machinery, accounts receivable, inventory, and other common collateral categories. Each type is matched to the most reliable valuation sources, ranked from professional appraisals down to automated estimates.

Does the tool calculate oversecured creditor entitlements under § 506(b)?

Yes. When the collateral value exceeds the total claim amount, CaseMark calculates the oversecured creditor's entitlement to post-petition interest, reasonable fees, and charges under § 506(b), applying the contract rate and relevant case law.

Can I use this for cramdown disputes and valuation motions?

Absolutely. CaseMark's analysis is structured to support cramdown objections, FRBP 3012 valuation motions, and plan treatment disputes by providing sourced valuations, clear bifurcation calculations, and identification of applicable legal standards.

What if I'm missing an appraisal or valuation evidence?

CaseMark will identify gaps in your documentation and flag which additional evidence is needed rather than making assumptions. This ensures your analysis is defensible and highlights where further appraisal work may be required.