Bankruptcy Code Section 506

Section 506 provides in relevant part.

Bankruptcy code section 506. Any time the trustee or debtor in possession expends money to provide for the reasonable and necessary cost and expenses of preserving or disposing of a secured creditor s collateral the trustee or debtor in possession is entitled to recover such expenses from the secured party or from the property securing an allowed secured claim held by such party. Section 506 of the bankruptcy code provides an exception you can use to remove some of those liens and reduce your debt burden. Section 506 c of the house amendment was contained in h r.

Section 506 of the bankruptcy code governs secured claims against a debtor s estate and allows debtors to void a lien to the extent it is unsupported by the value in the collateral. 8200 as passed by the house and adopted verbatim in the senate amendment. Section 506 federal bankruptcy law is covered in title 11 of the u s.

Determination of secured status on westlaw findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. The panel held that under 506 d if a creditor s claim has not been allowed in the bankruptcy proceeding then a lien securing the claim is void. Section 506 says that if a creditor has a claim greater than his interest in the debtor s property the claim is unsecured.