Central District Consumer Bankruptcy Attorney's Association

I believe in a chapter 11 case the applicable section for the best interest
of the creditors test is 1129(a)(7)(A)(ii) which provides that the
creditors must receive at least the value "as of the effective date of the
plan" that is not less than the amount the creditor would receive under a
hypothetical chapter 7 liquidation. If the inheritance is received prior
to the Effective Date it must be considered in determining the liquidation
value.
*Link Schrader, Attorney*
Law Office of Link W. Schrader
Mail: P.O. Box 3723, Tustin, CA 92781
Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
Office: (714) 542-5922; Mobile/Text: (310) 413-6924
Fax: (310) 878-4158; www.schrader-law.com

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Listmates:
Chapter 11 Debtor is about to propose his plan. Debtor's father is very
ill and could die soon. Debtor stands to inherit a large sum of money.
What are the implications for
1. Proposing a plan and other case strategy
A. I can see that in general the liquidation analysis won't change
because it is based on Debtor's property at filing.
B. However any property inherited within 180 days of filing will be
included in the estate (541(a)(5)(A)) and thus will affect the best
interests (v. chapter 7) test.
C. Any chance of post-180 day inheritance becoming part of the estate?
D. Any other BK issues?
2. Estate Planning
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
Listmates:Chapter 11 Debtor is about to propose his plan. Debtor's father is very ill and could die soon. Debtor stands to inherit a large sum of money. What are the implications for
1. Proposing a plan and other case strategy A. I can see that in general the liquidation analysis won't changebecause it is based on Debtor's property at filing. ll be included in the estate (541(a)(5)(A)) and thus will affect the best interests (v. chapter 7) test.
C. Any chance of post-180 day inheritance becoming part of the estate? D. Any other BK issues?2. Estate Planning-- Alik Segal
Alik.Segal@gmail.com310-362-6157California Central District

The post was migrated from Yahoo.