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Strategies to set up plan to discourage 1111(b) election? Or do we
We are dealing with equipment: mostly semi trucks and trailers.Some of them
have value way below the loans, but I don't know if it's low enough to be
considered inconsequential per 1111(b)(1)(B)(i). In one instance, the value
is about 10% of the loan. We could probably strip about $250K in claims
total. (Not all secured claims are undersecured. Some are oversecured.)
Am I correct that if the creditors make the election, we can make present
value monthly payments with no interest over an extended period of time to
pay off the claim in full? 10 years, 20 years? Whereas without the
election, the creditors will receive interest as well as a distribution on
the unsecured portion of their claims and be entitled to vote with the
unsecureds?
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
*Central District of California & District of Idaho* - Consumer Bankruptcy
Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
We are dealing with equipment: mostly semi trucks and trailers.Some of them have value way below the loans, but I don't know if it's low enough to be considered inconsequential per 1111(b)(1)(B)(i). In one instance, the value is about 10% of the loan. We could probably strip about $250K in claims total. (Not all secured claims are undersecured. Some are oversecured.)Am I correct that if the creditors make the election, we can make present value monthly payments with no interest over an extended period of time to pay off the claim in full? 10 years, 20 years? Whereas without the election, the creditors will receive interest as well as a distribution on the unsecured portion of their claims and be entitled to vote with the unsecureds?
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