IN RE KITCHENS

GEORGE BOSWELL, Bankruptcy Judge

The Court conducted a hearing on BankTennessee's Motion for Relief from the Automatic Stay and its Objection to Confirmation on August 28, 2003. FED. R. BANKR. P. 9014. Pursuant to 28 U.S.C. § 157(b)(2)(A), this is a core proceeding. The Court has reviewed the testimony from the hearing and the record as a whole. This Memorandum Opinion and Order shall serve as the Court's findings of facts and conclusions of law. FED. R. BANKR. P. 7052.

This case is Elizabeth Kitchens's ("Kitchens" or "debtor") fourth bankruptcy filing in the Western District of Tennessee. All three previous cases were dismissed for failure to pay. The current case was filed on June 20, 2003. According to the Chapter 13 Trustee's office, the debtor is current on her plan payments as of September 17, 2003.

BankTennessee has been a creditor in all four of the debtor's chapter 13 cases, with its collateral being a 1999 Pontiac Grand Am. BankTennessee has objected to confirmation in three of Kitchens's four cases. In the present case, BankTennessee has objected to confirmation of the debtor's plan based on the value of the Grand Am. The debtor assigned the Grand Am a value of $7,000.00 with an interest rate of 6% in her proposed plan. At the hearing on its objection, BankTennessee alleged that the debtor should be required to value the Grand Am in accordance with the value given to it in her previous case. As grounds for its motion to lift stay, BankTennessee averred that the debtor's past payment history indicates that she will be unable to provide the bank with adequate protection in this case.

According to the Chapter 13 Trustee, the debtor is making plan payments in this case timely and in full. As a result, the Court will conditionally deny BankTennessee's motion for relief at this time. Should the debtor fail to make a future plan payment in full or on time, BankTennessee will be authorized to file a Notice of Default. The debtor will then have fifteen days to cure said default. Should the debtor fail to make such cure, the automatic stay will be lifted as to BankTennessee with prejudice. Additionally, should this case eventually be dismissed for failure to pay, said dismissal will be with prejudice under 11 U.S.C. § 109(g).

With regard to BankTennessee's objection to confirmation, § 1325(a)(5)(B)(ii) provides that the holder of an allowed secured claim is entitled to receive "the value, as of the effective date of the plan" of its collateral. 11 U.S.C. § 1325(a)(5)(B)(ii) (emphasis added). This Court has previously held that this time of valuation is absolute and that there is nothing in either the Bankruptcy Code or case law which authorizes a court to reach further back in time than the effective date of the plan to value collateral.

Although the Court is bound by § 1325(a)(5)(B)(ii)'s time constraints, it is unable to rule on the bank's objection to confirmation at this time. No proof was introduced by the debtor or creditor at the August 28, 2003, hearing as to the Grand Am's value or the appropriate interest rate. As a result, the Court must conduct a valuation hearing before ruling on the bank's objection. The valuation hearing will be set for October 23, 2003, at 10:30 a.m. The confirmation hearing as well as BankTennessee's objection will be continued until the same date and time.

It is therefore ORDERED that:

A. BankTennessee's Motion for Relief from Stay is CONDITIONALLY DENIED based upon the following provisions:

1. The Debtor shall make all future plan payments on time and in full;

2. Should the debtor fail to make a plan payment on time or in full, the creditor shall be authorized to give notice of such default;

3. Upon the creditor's Notice of Default, the debtor will have fifteen days to cure the default;

4. Should the debtor fail to cure the default within the fifteen days, the Automatic Stay will be lifted with prejudice as to BankTennessee;

5. Should this case be dismissed for failure to pay, said dismissal will be with prejudice.