Page 1 of 1

Are adequate protection payments applied only to

Posted: Thu Dec 21, 2017 2:08 pm
by Yahoo Bot

This is the way I understand the Code, I haven't looked at 9th Cir cases...Where the collateral value is declining, the AP payments are intended to cover the amount of decline to maintain the status quo.
Where the over-secured claim doesn't have an adequate equity cushion, the AP payments are applied to the interest and then to principal.
Where the collateral value is less than the claim, the AP payments are applied to the secured portion rather than the unsecured portion. 506(b) only allows interest on an over-secured claim.
Peter M. Lively, J.D., M.B.A.
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400* Toll Free: (800) 307-3328 * Fax: (310) 391-2462
On Thursday, December 21, 2017, 8:19:37 AM PST, Holly Roark hollyroark22@gmail.com [cdcbaa] wrote:
How are adequate protection payments applied in chapter 11 if not specifically stated in the stipulation? Do they pay down principal and interest or are they interest only payments?
Holly RoarkCertified Bankruptcy Specialist*
and Sports Lawyer
holly@roarklawoffices.com**primary email address**www..roarklawoffices.comCentral District of California & District of Idaho - Consumer Bankruptcy Attorney1875 Century Park East, Suite 600 Los Angeles, CA 90067T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of LegalSpecialization

The post was migrated from Yahoo.