Determining amount of necessary protection.
a. Amount of allowed secured claim: The allowed secured claim is what needs to be protected, so it is necessary to figure out what that is b/4 determining the appropriate amount of protection that needs to be provided.
b. Value of the collateral. Value of the collateral may be difficult to determine—fmv v. liquidation value?
c. How much it will depreciate in value over time, and what it can be sold for later. Need to figure out how the product depreciates. If product is highly specialized and may be difficult to sell later, especially if there is a buyer lined up now that might not be there later, the debtor may need to provide additional protection.
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