Collateral Valuation

Value Collateral & Split Claims in Minutes, Not Hours

12 minutes with Para

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Get started with Para

Para is an AI colleague for legal teams. Send it this work by email, Teams or Slack, and it hands back the finished document.

12 minutes with Para

What you'll need

Collateral Documentation
Debt and Claim Records
Bankruptcy Filing Documents

Plans from $20 a month, with usage included.

Workflow

Overview

CaseMark's Collateral Valuation skill automates the complex process of valuing collateral and bifurcating claims into secured and unsecured portions under 11 U.S.C. § 506. It applies chapter-specific valuation standards, identifies special rule triggers like the 910-day vehicle provision, and produces detailed allocation calculations ready for proofs of claim, plan treatment analyses, and valuation motions.

Collateral valuation in bankruptcy requires attorneys to navigate overlapping statutory provisions, chapter-specific standards, and special rules that change the analysis entirely. A single misstep — applying liquidation value instead of replacement value, or missing the 910-day cutoff — can result in incorrect claim treatment, lost secured status, or a failed cramdown argument. The manual process of classifying collateral, selecting valuation sources, and performing bifurcation calculations is time-intensive and error-prone.

CaseMark automates the entire collateral valuation workflow by classifying each asset, applying the correct chapter-specific valuation standard, checking for special rule triggers, and calculating the precise secured/unsecured split. The AI handles the analytical complexity while attorneys retain full control to review, adjust, and finalize the output — transforming hours of manual work into a streamlined, reliable process.

How to hand this to Para

1. Send Para the files
Email them, drop them in a Teams or Slack message, or upload them.
2. Para runs the Collateral Valuation skill
It works from your files and checks its citations against the record.
3. The finished document comes back
Para returns it where you asked, usually as a DOCX, and offers the next step.

Example request · email, Teams or Slack

Para, run the Collateral Valuation skill for the Garcia matter. I've attached the Collateral Documentation, Debt and Claim Records and Bankruptcy Filing Documents. Send the finished draft back here as a DOCX.

What Para does

1. Upload collateral documentation, debt records, and bankruptcy filing documents
2. AI classifies each collateral asset, selects appropriate valuation sources, and applies chapter-specific standards
3. Review the secured/unsecured split, special rule triggers, and deficiency calculations
4. Export the complete valuation analysis in your preferred format (DOCX, PDF)

What you get

Collateral Classification & Valuation Source Selection
Chapter-Specific Valuation Standard Application
Special Rule Analysis (910-Day, § 506(b) Oversecured Interest)
Secured vs. Unsecured Claim Allocation
Deficiency Calculation & Plan Treatment Recommendations

What it handles

Classifies collateral by type and selects court-appropriate valuation sources
Applies chapter-specific valuation standards including Rash replacement value and Chapter 7 liquidation value
Automatically identifies 910-day vehicle rule applicability and § 506(b) oversecured interest
Splits total claim into secured and unsecured portions with supporting calculations
Generates deficiency calculations and plan treatment recommendations for cramdown disputes

Required documents

Collateral Documentation
Appraisals, valuation guides, comparable sales data, photos, and collateral inventory with identifiers, condition, and location details
.pdf, .docx, .xlsx
Debt and Claim Records
Loan agreements, promissory notes, proofs of claim, account statements showing principal, accrued interest, fees, and contract rate
.pdf, .docx, .xlsx
Bankruptcy Filing Documents
Petition, schedules (especially Schedule D), proposed plan, and any relevant court orders indicating chapter, petition date, and case posture
.pdf, .docx

Supporting documents

Prior Valuation Orders or Stipulations
Any existing court orders, stipulations, or prior rulings on collateral value in the case
.pdf, .docx
Title and Lien Documentation
Title reports, UCC filings, mortgage recordings, or other lien priority documentation
.pdf, .docx
Opposing Party Valuations
Appraisals, declarations, or valuation evidence submitted by opposing parties for contested matters
.pdf, .docx

Why teams use it

Eliminate manual calculation errors in secured/unsecured claim splits that can derail plan confirmations or proof of claim filings

Ensure the correct valuation standard is applied every time — liquidation value for Chapter 7, replacement value under Rash for Chapter 13, and appropriate standards for Chapter 11

Instantly identify special rule applicability including the 910-day vehicle rule and § 506(b) oversecured interest entitlements

Produce court-ready valuation analyses in minutes that would typically require hours of attorney research and calculation

Questions

Which bankruptcy chapters does this tool support?

CaseMark's collateral valuation skill supports Chapter 7 liquidation value, Chapter 13 replacement value under the Rash standard, and Chapter 11 cramdown analyses. It automatically applies the correct valuation standard based on the chapter and case posture you provide.

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 rule applies, the tool flags that the full claim amount is treated as secured, overriding the standard § 506(a) bifurcation. This prevents errors in plan treatment calculations.

What types of collateral can be valued?

CaseMark handles real property, vehicles, equipment and machinery, accounts receivable, inventory, and other common collateral types. Each category uses ranked valuation sources appropriate for court proceedings, from MAI appraisals to NADA Guides to certified equipment appraisals.

Can I use this for contested valuation motions under FRBP 3012?

Yes. CaseMark's analysis identifies the strongest valuation evidence, flags weaknesses in opposing positions, and structures the secured/unsecured split with the rigor needed for valuation motions. The output provides a foundation for court filings and expert preparation.

How accurate is the AI-generated valuation analysis?

CaseMark applies the correct legal standards and performs precise mathematical calculations based on the data you provide. The quality of the output depends on the quality of your inputs — appraisals, comps, and debt records. All results should be reviewed by a qualified attorney before filing.

Does the tool calculate § 506(b) oversecured interest and fees?

Yes. When collateral value exceeds the total claim amount, CaseMark identifies the oversecured position and calculates allowable post-petition interest, fees, and charges under § 506(b), including analysis of the applicable contract rate and reasonableness standards.