How 11 U.S.C. § 506 applies in Utah — federal bankruptcy law, Utah district data.
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.
Districts covered: D. Utah.
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 Utah-specific answer, check the screener or consult a local attorney.
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