MATTER OF LINDSEY

Nos. 86-2658, 86-2659.

823 F.2d 189 (1987)

In the Matter of Wayne Rodney LINDSEY and Margaret A. Lindsey, Debtors: Wayne Rodney LINDSEY and Margaret A. Lindsey, Plaintiffs-Appellants, v. FEDERAL LAND BANK OF ST. LOUIS; and United States of America acting through Farmers Home Administration, a division of the United States Department of Agriculture, Defendants-Appellees. In the Matter of Louis Patrick KNESS, Debtor: Louis Patrick KNESS, Plaintiff-Appellant, v. FEDERAL LAND BANK OF ST. LOUIS and Bank of Viola, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided July 6, 1987.


Attorney(s) appearing for the Case

Carl F. Reardon, Reardon & Orr Ltd., East Peoria, Ill., for plaintiffs-appellants.

Gerald D. Fines, U.S. Atty., Springfield, Ill., Douglas R. Lindstrom, West Neagle & Williamson, Galesburg, Ill., for defendants-appellees.

Before CUMMINGS, CUDAHY, and POSNER, Circuit Judges.


POSNER, Circuit Judge.

Section 506(a) of the Bankruptcy Code, 11 U.S.C. § 506(a), provides that "an allowed claim of a creditor secured by a lien on property in which the [bankrupt] estate has an interest ... is a secured claim to the extent of the value of such creditor's interest in the estate's interest in such property," and beyond that is an unsecured claim. Section 506(d) provides (with immaterial exceptions) that a lien which is not an allowed secured...

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