If Abe has an allowed claim of $5,000 against the estate of Deborah and has a security interest in her art collection in the amount of $3,000 of the $5,000 claim:

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When a creditor has a security interest in an asset, they have a secured claim in the amount of the value of the asset that secures the debt. In this case, Abe has a security interest in Deborah's art collection worth $3,000, so he has a secured claim for $3,000. The remaining $2,000 of his claim is unsecured. Therefore, in the bankruptcy proceeding, Abe will receive $3,000 as a secured creditor and will have an unsecured claim for the remaining $2,000.

If Abe Has an Allowed Claim of $5,000 Against the Estate