Randall K. Townsend and Linda Townsend

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In Re: 	Case No. 05-34009PM
Randall K. Townsend and Linda Townsend,
Chapter 13
Debtors.
Randall K. Townsend and Linda Townsend,
Movants,
v.
Triad Financial Corporation,
Respondent.
MEMORANDUM OF DECISION
This case is before the court on the motion filed by the debtors to value a 2001 Chevrolet
Tahoe that secures an obligation owed to Triad Financial Corporation. The matter came on for
hearing on August 3, 2006. Debtor Linda Townsend testified as to the litany of problems she has
had with the motor vehicle since the time of its purchase in September 2004. Shortly after the time
of purchase, when she viewed the vehicle in daylight, she sought to rescind the contract without
success. In the meanwhile, there have been several recalls of the vehicle because the original owner
appears to have lived in what was termed a "high corrosion" area. The parties submitted appraisals.
The creditor's appraiser stated the value to be $15,687.50. The debtors submitted two appraisal
statements, both of which appeared to be based on a trade-in value. These two appraisals were in
the sum of $8,000.00. Because of the great divergence in the appraisers' valuations, the court
inspected the vehicle and noted the various defects described by the debtors. There is substantial
rust, some body damage, some missing parts and the tires appear to be worn. The interior of the
Date signed August 04, 2006
Entered: August 07, 2006 Case 05-34009 Doc 76 Filed 08/07/06 Page 1 of 2

vehicle appears in good shape and to be well cared for considering the damage and defects
described.
After consideration of all of the relevant facts, the court finds the replacement value of this
vehicle in its sub-standard condition to be $10,750.00 and the appropriate interest rate is found to be
9.5%.
An appropriate order will be entered.
cc: 	Randall K. Townsend and Linda Townsend
15325 Aylesbury Street
Silver Spring, MD 20905
Kevin D. Judd
601 Pennsylvania Ave., N.W.
Suite 900-South Bldg.
Washington, DC 20004
Timothy P. Branigan
P.O. Box 1902
Laurel, MD 20725-1902
Triad Financial Corporation
c/o Covahey, Boozer, Devan, & Dore, P. A.
Mark S. Devan
606 Baltimore Ave., Suite 302
Towson, Maryland 21204
Covahey, Boozer, Devan, & Dore, P. A.
Mark S. Devan
606 Baltimore Ave., Suite 302
Towson, Maryland 21204
End of Memorandum Decision
Case 05-34009 Doc 76 Filed 08/07/06 Page 2 of 2