Golden Gate University Law Review


Edwin S. Clark


In re Mitchel marks the first examination by a circuit court of valuation standards used in Chapter 13 proceedings to establish the value of a creditor's secured claim in a vehicle. In Mitchell, the Ninth Circuit held that the standard to be applied in most cases is a vehicle's wholesale values and that any other standard, such as retail value, should be applied only where the debtor uses a vehicle as part of a going concern. This note will show that the Mitchell majority arrived at its rule by grounding its analysis in well-settled bankruptcy philosophy& and by strictly construing the structure of 11 U.S.C. § 506(a) in accord with its legislative history.