Jewel Snitz has filed a Chapter 13 bankruptcy. She owns a Ford Explorer she bought about a year ago to haul around her real estate clients and to take to the beach on weekends. The outstanding loan balance, together with accumulated interest and penalty payments, is $30,000. During the period between filing the Chapter 13 and the confirmation of the plan, another $250 in interest will accumulate. The local bankruptcy court has settled on 10 percent as a market interest rate for fully secured car loans in Chapter 13.

The Dealer's Bulebook (retail value) lists the value of the car as $32,100. The Dealer's Redbook (wholesale value) lists its value as $28,400. At a liquidation sale the car would probably bring $26,300. Through a private want ad it would likely sell for $33,300. How much will Jewel have to pay for her car in a Chapter 13? If the car has some unusual scratches, chipped paint, and a funny little knock in the engine, who will want to point that out? See Section 506(a) and 1325(a).