UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF KENTUCKY

ASHLAND DIVISION

IN RE:

RUSSELL SUNDAY

RUTH SUNDAY

DEBTORS CASE NO. 92-10147

MEMORANDUM OPINION

This matter was submitted to the Court for decision after a hearing conducted on December 3, 1992, concerning the valuation of a 1986 Renault automobile which the debtors wish to redeem for $300.00. The debtors have claimed an exemption in the automobile. Previously, the creditor holding a security interest in the car, First National Bank of Louisa ("the Bank"), had requested and received relief from the automatic stay in order to repossess the automobile and sell it. This Court entered an Order sustaining the Motion for Relief from Stay on August 14, 1992, and an Order granting redemption on September 11, 1992.

The Bank filed a Motion to Set Aside Order of Redemption on October 1, 1992. The debtors filed a Response and a hearing was conducted on November 5, 1992. A valuation hearing was then ordered on November 9. The debtors and the Bank submitted affidavits of appraisers. The Bank's appraiser merely stated that the automobile's retail value was $1200.00. He did not give a basis for this opinion, nor did he state whether this value was related to NADA guidelines in any way.

The debtors' appraiser stated that the automobile has only a salvage value of $300.00. He details the repairs that it needs, including one problem that he considers unrepairable. The debtors' appraiser stated that the "NADA Book Value" of the vehicle was $1,400.00. He did not state if this was wholesale or retail. It is the opinion of this Court that the debtors' appraiser has provided the better, more detailed appraisal. Assuming that the automobile requires all the repairs that he lists, it could not appraise at retail value.

This Court will therefore enter a separate order setting the value of the subject automobile at $300.00 and overruling the Bank's Motion to Set Aside Order of Redemption.

Dated:

By the Court -

______________________________

Judge

Debtors

John R. Triplett, Esq.

Paul D. Deaton, Esq.