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ASSOCIATES COMMERCIAL CORP. v. RASH

No. 96-454.

520 U.S. 953 (1997)

117 S.Ct. 1879

138 L.Ed.2d 148

ASSOCIATES COMMERCIAL CORP. v. RASH et ux.

Supreme Court of United States.

Decided June 16, 1997.

Attorney(s) appearing for the Case

Carter G. Phillips argued the cause for petitioner. With him on the briefs were Shalom L. Kohn, David M. Schiffman, Ben L. Aderholt, and Raymond J. Blackwood.

Kent L. Jones argued the cause for the United States as amicus curiae urging reversal. With him on the brief were Acting Solicitor General Dellinger, Assistant Attorney General Argrett, Deputy Solicitor General Wallace, and Gary D. Gray.

John J. Durkay argued the cause and filed a brief for respondents.*

Ginsburg, J., delivered the opinion of the Court, in which Rehnquist, C. J.,and O'Connor, Kennedy, Souter, Thomas, and Breyer, JJ., joined, and in all but n. 4 of which Scalia, J., joined. Stevens, J., filed a dissenting opinion, p. 966.

Justice Ginsburg delivered the opinion of the Court.†

We resolve in this case a dispute concerning the proper application of § 506(a) of the Bankruptcy Code when a bankrupt debtor has exercised the "cram down" option for which Code § 1325(a)(5)(B) provides. Specifically, when a debtor, over a secured creditor's objection, seeks to retain and use the creditor's collateral in a Chapter 13 plan, is the value of the collateral...

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