Ch 11 - 1111(b) election
Posted: Tue May 22, 2012 6:37 am
Hi Link:
Would you please share the list of books?
Thanks.
Catherine Christiansen
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Monday, May 21, 2012 8:29 PM
Subject: RE: [cdcbaa] Ch 11 - 1111(b) election
Hi Dennis,
Last night I ordered 1) EZ Rules For The Bankruptcy Code; 2) Bankruptcy and Debtor/Creditor; 3) 2011 Collier Portable Pamphlet; and 4) Bankruptcyurces list from the bankruptcy specialization presentation held a few months ago. I wasnt able to find the AWHFY or the California Practice Guide: Bankruptcy by Judge Ahart.
Thank you,
Link Schrader, Attorney
Law Office of Link W. Schrader
From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Dennis McGoldrick
Sent: Monday, May 21, 2012 6:36 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Ch 11 - 1111(b) election
Link:
buy a book the article Mark cites gives some info, but leaves out how much you have to pay and why a creditor may want to keep it's entire lien.Under 1111(b), a partially secured creditor may elect to be considered a full recourse creditor, i.e. may demand full payment (both the securedand unsecuredclaim have to be piad in full, but can be paid without interest).. Section 1129(a)(7)(B), though, requires the full present value of the secured claim to be paid.. Say for example there is a second trust deed which is in the amount of $50,000.00, but is partially unsecured, making the lien $10,000 secured and $40,000 unsecured.
How much does your super 13 debtor have to pay this second? $50,000, but it can be paid in installments over the term of the plan without interest.
If however, the secured portion is $45,000.00 of the $50,000.00 owed, the present value of $45,000 would exceed $50,0000, if paid over time. So, counsel must calculate both tests and either (a) pay the creditor the full recourse amount when the present value is less than the full recourse amount, or (b) pay the present value of the allowed secured claim, when the present value is greater then the gross amount of the claim."
ok, so in a math formula is sc secured claim1, pay sc/pt if > pv, or
2, pay pv over pt if > result from 1 (pv requires ammortization over pt, not just a straight division problem)
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re
If you want more, go read the article published by Ken Klee, with a title something like: Eveything you want to know about 1111b, but were afraid to ask.
dennis
From:Link W. Schrader
To: "cdcbaa@yahoogroups.com"
Sent: Sunday, May 20, 2012 9:05 PM
Subject: [cdcbaa] Ch 11 - 1111(b) election
Can anyone refer me to a case or resource to better understand an 1111(b) election in a Chapter 11 case? I see one coming and need to prepare. Thank you,
Link W. Schrader, Attorney
lschrader@schrader-law.com
Mail: PO Box 3723, Tustin, CA 92781
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