In re Young

MEMORANDUM DECISION REGARDING STANDARD FOR VALUATION OF CREDITOR’S CLAIM

Before the Court is the Debtors’ Motion to Modify Chapter 13 Plan (“Motion”). The Debtors, Casey and Barbara Young (“Debtors”), filed their original Chapter 13 plan (“Plan”) on July 30, 2004. The Plan was confirmed without objection on September 24, 2004.

Debtors filed the instant Motion on October 5, 2005. Having received no objection, Debtors filed a request for entry of default on October 26, 2005. On October 27, 2005, Creditor CIT Group/Sales Financing, Inc. (“Creditor”) filed an objection to the Motion on the basis that the valuation of the collateral for its secured claim, Debtors’ mobile home, was too low. Neither counsel for Debtor nor counsel for Creditor scheduled a hearing on the Motion, so on May 3, 2006, the Chapter 13 Trustee set the matter on the Court’s calendar. An initial hearing was held on June 5, 2006. The hearing was continued to permit, inter alia, the parties to obtain appraisals and submit additional briefing. The Court held a final argument on the Motion on January 26, 2007, and took the matter under submission.

Debtors in this case are represented by James J. Gold, Esq. of Gold…