Absolute priority rule applies to individual Chapter 11 debtors
Posted: Fri Jan 29, 2016 1:13 pm
Same as always, present their options and enough analysis to make an educated decision
Sent from my iPhone - please excuse typos.
Thank you.
> On Jan 29, 2016, at 12:44 PM, Kirk Brennan kirkinhermosa@gmail.com [cdcbaa] wrote:
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> It becomes hard to counsel potential individual chapter 11 clients regarding the odds of succeeding since any objecting creditor can mess up the plan. How are you all going to talk with potential clients about the odds of success?
>
>> On Jan 28, 2016 2:06 PM, "Jim Selth jim@wsrlaw.net [cdcbaa]" wrote:
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>> [Attachment(s) from Jim Selth included below]
>> The Ninth Circuit just published their decision in Zachary v. California Bank & Trust. See attached.
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>> Per the Law360 website:
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>> In an arcane but important question of first impression, the Ninth Circuit ruled Thursday that the absolute priority rule still applies to individual chapter 11 reorganizations after the Bankruptcy Code was amended in 2005, overruling a previous decision from the circuits Bankruptcy Appellate Panel.
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>> A three judge panel affirmed that the absolute priority rule, which requires debtors to pay dissenting creditors in full before retaining any property, still applies to individual Chapter 11 reorganizations after the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
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>> James R. Selth
>> Certified Bankruptcy Specialist*
>> Weintraub & Selth, APC
>> 11766 Wilshire Boulevard, Suite 1170
>> Los Angeles, California 90025
>> Telephone: (310) 207-1494
>> Facsimile: (310) 442-0660
>> E-Mail: jim@wsrlaw.net
>> Web: www.wsbankruptcylaw.com
>>
>>
>>
>> *Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
>>
>> Commissioner, Bankruptcy Law Advisory Commission, State Bar of California.
>>
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