§506 Secured Claim Valuation in Texas

How 11 U.S.C. § 506 applies in Texas — federal bankruptcy law, Texas district data.

What §506 Secured Claim Valuation Does

A creditor's claim is "secured" only up to the value of the collateral. Any deficit above that value is unsecured. This framework is the foundation of Chapter 13 cramdown, lien stripping, and lien avoidance.

Key points:

Texas Bankruptcy Data (FJC)

312,246
Total filings
65.5%
Dismiss rate
99,772
Prior filers
23.2%
Prior discharge rate

Districts covered: N.D. Tex., E.D. Tex., S.D. Tex., W.D. Tex..

Apply This to Your Case

The rules above are federal — they apply identically in every state. What varies by state is exemptions (§522), median income thresholds (means test), and case-law interpretations of ambiguous terms. For a Texas-specific answer, check the screener or consult a local attorney.

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Related Texas Statutes

§506 Secured Claim Valuation in Other States