Chapter 11 claim bifurcation with cramdown

Yahoo Bot · Tue Apr 27, 2010 10:53 am

charset="windows-1251"
I know of a KT case where the debtor has a 15 year plan and is attempting to
close the case. The Court will likely grant that request because there is
only 1 creditor receiving the long term payout - the IRS.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
L
Sent: Tuesday, April 27, 2010 8:37 AM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Chapter 11 claim bifurcation with cramdown
Dennis,
This is a new development regarding UST Fees that looks good for
individual debtors not paying UST Fees throughout entire Plan duration:
The Office of the U.S. Trustee has recently taken the position
that, despite the changes in chapter 11 as applied to individuals, it will
not normally object to an individual chapter 11 debtors request to close
the case before discharge once the estate has been fully administered, as
described in the Advisory Committee Note to Rule 3022. Walter W. Theus,
Jr., Individual Chapter 11s: Case Closing Reconsidered, 29-Feb. Am. Bankr.
Inst. J. 1, 63 (2010) (author is a trial attorney with the Executive Offices
for U.S. Trustees).
Peter M. Lively, JD/MBA
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647
Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462
A-Bankruptcy-Attorney.com
Personal Financial Law Center II
1706-B Newport Boulevard, Costa Mesa, CA 92627-3073
Telephone: (949)650-3328
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO
WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED,
CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER
OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT
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COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY
TELEPHONE. THANK YOU.
_____

The post was migrated from Yahoo.

Yahoo Bot · Tue Apr 27, 2010 8:37 am

Dennis,
good for individual debtors not paying UST Fees throughout entire Plan duration:
ce of the U.S. Trustee has recently taken the position that, despite the changes in chapter 11 as applied to individuals, it will not normally object to an individual chapter 11 debtors request to close the case before discharge once the estate has been fully administered, as described in the Advisory Committee Note to Rule 3022. Walter W. Theus, Jr., Individual Chapter 11s: Case Closing Reconsidered, 29-Feb. Am. Bankr. Inst. J. 1, 63 (2010) (author is a trial attorney with the Executive Offices for U.S. Trustees).
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647
Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462
A-Bankruptcy-Attorney.com
Personal Financial Law Center II
1706-B Newport Boulevard, Costa Mesa, CA 92627-3073
Telephone: (949)650-3328
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
________________________________
To: cdcbaa@yahoogroups.com
Sent: Mon, April 26, 2010 7:38:01 PM
Subject: Re: [cdcbaa] Chapter 11 claim bifurcation with cramdown
Bridget:
yes, but treatment will vary.
human - no discharge till all payments paid, this means quarterly fees for length of plan.
nonhuman, can still claim substantial consumation and get cases closed, if you put that in your plan. redline the plan if you change it. In this fashion, creditor can accept 20 year term, but hard to cram it down, as court will not be able to foresee forever (bk court not the Calif. Supreme Court, which can foresee forever)
dennis
>Subject: [cdcbaa] Chapter 11 claim bifurcation with cramdown
>To: cdcbaa@yahoogroups. com
>Date: Monday, April 26, 2010, 7:09 PM
>
>
>
>If you are able to bifurcate a secured creditor's claim per 506(a) and then cramdown per 1129(b)(2)(A) to pay off the allowed secured claim over a period of time, does the "period of time" have to be the life of the plan as it does in a chapter 13?
>
>Thank you.
>
>
Dennis,

This is a new development regarding UST Fees that looks good for individual debtors not paying UST Fees throughout entire Plan duration:

The Office of the U.S. Trustee has recently taken the position that, despite the changes in chapter 11 as applied to individuals, it will not normally object to an individual chapter 11 debtors request to close the case before discharge once the estate has been fully administered, as described in the Advisory Committee Note to Rule 3022. Walter W. Theus, Jr., Individual Chapter 11s: Case Closing Reconsidered, 29-Feb. Am. Bankr. Inst. J. 1, 63 (2010) (author is a trial attorney with the Executive Offices for U.S. Trustees). Peter M. Lively, JD/MBALaw Office of Peter M. Lively * Personal Financial Law Center I11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462 A-Bankruptcy-Attorney.com
Personal Financial Law Center II1706-B Newport Boulevard, Costa Mesa, CA 92627-3073Telephone: (949)650-3328
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
From: Dennis McGoldrick <easky1@yahoo.com>To: cdcbaa@yahoogroups.comSent: Mon, April 26, 2010 7:38:01 PMSubject: Re: [cdcbaa] Chapter 11 claim bifurcation with cramdown
Bridget:

yes, but treatment will vary.

human - no discharge till all payments paid, this means quarterly fees for length of plan.

nonhuman, can still claim substantial consumation and get cases closed, if you put that in your plan. redline the plan if you change it. In this fashion, creditor can accept 20 year term, but hard to cram it down, as court will not be able to foresee forever (bk court not the Calif. Supreme Court, which can foresee forever)

dennis--- On Mon, 4/26/10, bridgetgkelly <bridgetgkelly@ hotmail.com> wrote:
etgkelly <bridgetgkelly@ hotmail.com>Subject: [cdcbaa] Chapter 11 claim bifurcation with cramdownTo: cdcbaa@yahoogroups. comDate: Monday, April 26, 2010, 7:09 PM

If you are able to bifurcate a secured creditor's claim per 506(a) and then cramdown per 1129(b)(2)(A) to pay off the allowed secured claim over a period of time, does the "period of time" have to be the life of the plan as it does in a chapter 13?Thank you.

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