UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
RONNIE M. WADE
MARRITTA CHRISTINA WADE CASE NO. 96-30343
OPINION AND ORDER
This matter is before the Court upon the motion filed by the debtors herein to redeem a 1995 Honda Accord automobile and the objection of the lienholder, Olympic Financial Ltd., to the proposed redemption price. The debtors have proposed to redeem the vehicle for $14,000.
The objecting lienholder points out that the debtors purchased the vehicle on April 30, 1996, 72 days prior to the filing of the bankruptcy and the purchase price was $27,017. The matter came on for hearing on March 12, 1997 and the parties agreed to submit the matter to the Court on affidavits of their appraisers. Subsequent to that time, counsel for Olympic Financial Ltd. has submitted the appraisal of Chris Lee, collection supervisor for Arcadia Financial. Also attached is the appraisal by Queen City Auto Auction, Inc. relied upon by the debtors. The submission of that appraisal has been acquiesced in by debtors= counsel in their notice of May 5, 1997.
The creditor relies upon the NADA book value of the vehicle since, according to the affidavit of the appraiser, the debtors refused to respond to requests to allow an inspection of the vehicle. The debtors= appraisal indicates that the vehicle is in average condition. The vehicle apparently has low mileage of about 12,000 miles on the odometer. No substantial problems or damage to the vehicle are noted in either appraisal.
Based upon review of the appraisals, the Court finds that the appraisal of the creditor in the amount of $18,022.50 most accurately reflects the value of the vehicle in question. The vehicle is, at this point, two model years old, but has only been used for approximately 12 months. The value proposed by the debtors would mean that the car has lost something approaching one-half of its value in one year=s use. This does not seem realistic and will not be accepted.
IT IS THEREFORE ORDERED that the value of the within 1995 Honda Accord is $18,022.50 and that the debtors may redeem same by paying said sum to the creditor within thirty (30) days from the date of this order, failing which the creditor may move for relief from stay or take other appropriate action concerning the matter.
Dated this _____ day of May, 1997.
BY THE COURT
James F. Gibbs Jr., Esq.
Kathryn H. Hogan, Esq.
Mark T. Miller, Esq.