Sassy owns an RV, in which she has granted a security interest to Central Bank to secure repayment of a loan with a balance of $25,000. The fair market value of the RV is $15,000. Sassy files Chapter 7 bankruptcy before Central Bank can repossess the RV. Which statement is correct?
1. Sassy can keep the RV because after bankruptcy, her debt to Central Bank is no longer valid.
2. Central Bank can conduct a foreclosure sale of the RV after obtaining a relief from stay from the court.
3. Sassy can redeem the RV if she pays Central Bank, in cash, the $10,000 difference between the debt and the value of the RV.
4. Sassy will be able to keep the RV if the court approves her plan.