The value of property securing a debt, Collateral Value, is a very significant issue in determining how a Creditor will be treated in Bankruptcy Court. Too much value above the debt and you may be considered "adequately protected" and will be prevented for getting relief from the Automatic Stay. Too little value and you may be deemed "unsecured" for a significant amount of the debt.
Collateral Value is generally determined by an Appraisal. In certain cases, the Value can be based on a Market Report.