Given the increasing number of Chapter 11 and Chapter 13 bankruptcy petitions filed each year, as well as Congress's preference for these "reorganization" plans instead of Chapter 7 "liquidation" plans, there has never been a greater need for the uniform interpretation and application of bankruptcy estate valuations. This law review Comment will advance the argument that the inconsistencies inherent in the application of the "cramdown" provisions of the U.S. Bankruptcy Code stem from confusion surrounding the concept of bankruptcy estate valuation; only by identifying the correct method for determining the valuation of a debtor's bankruptcy estate can courts consistently and equitably apply cramdown and other secured debt provisions. Part II of this Comment therefore examines the various valuation methods employed by courts today, both in the context of liquidation and reorganization bankruptcy filings. Part III addresses the role that cramdown interest rates play in determining the value of bankruptcy estates by examining the U.S. Supreme Court decisions in Rash and Till. Part IV concludes by proposing the appropriate calculations to be performed when assessing both collateral and overall estate valuations in the context of bankruptcy proceedings.
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