Cite as: 520 U. S. 953 (1997)
Opinion of the Court
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, post, p. 966.
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.*
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 to be determined by (1) what the secured creditor could obtain through foreclosure sale of the property (the "foreclosure-value" standard); (2) what the debtor would have to pay for comparable property (the "replacement-*Briefs of amici curiae urging reversal were filed for NationsBank, N. A., et al. by John H. Culver III; and for the Washington Legal Foundation by David R. Kuney, Daniel J. Popeo, and Penelope K. Shapiro.
Briefs of amici curiae urging affirmance were filed for the National Association of Chapter 13 Trustees by Henry E. Hildebrand and Christopher M. Minton; for the National Association of Consumer Bankruptcy Attorneys, Inc., by Norma L. Hammes and James J. Gold; and for Donald and Madelaine Taffi by A. Lavar Taylor.
Jan T. Chilton and Phillip D. Brady filed a brief for the American Automobile Manufacturers Association, Inc., et al. as amici curiae.
†Justice Scalia joins all but footnote 4 of this opinion.
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