Ch 11: Effect of recent ch 7 discharge on fully
Posted: Tue Aug 19, 2014 8:27 am
A lot depends on the judge, of course. With BB, you could not get around
1111(b)(1) - the lesser known "1111". Note that such section applies only
to Chapter 11 though.
On Monday, August 18, 2014, Michael Avanesian michael@avanesianlaw.com
[cdcbaa] wrote:
>
>
> I think Gio is correct in that's how it usually works and probably how
> it's supposed to work. Whether, if in need of it to work another way you
> can get a particular judge or a circuit to go the other way, I think, is
> another story.
>
> Here is an example:
>
> http://scholar.google.com/scholar_case? ... as_sdt2006
> (In re Hill, 440 BR 176 - Bankr. Court, SD California 2010).
>
> If you look at pg 184 paragraph F, it says the claim is allowed but still
> subject to a claims objection. Of course, in a Chapter 13, there is no
> point to most claims objections since the marginal value of a claims
> objection is negative. So I don't know if a claims objection was ever made.
>
> Under most circumstances, in a Chapter 11, you're looking at votes as the
> primary reason for a claims objection. Otherwise, if $100,000 is being paid
> to the unsecured class, who cares if a deficiency claim is allowed? I
> assume that's the problem in Alik's situation.
>
> If I absolutely needed an unsecured non-recourse claimant's claim to be
> gone from the case, I would consider lien avoidance + claim objection and I
> would argue that 1111 does not apply to a voided lienholder's claim. This
> process is, of course, expensive for both parties which allows you to
> settle the dispute and get the plan confirmed.
>
> Sincerely,
> Michael Avanesian
>
> On Mon, Aug 18, 2014 at 7:40 PM, Giovanni Orantes go@gobklaw.com
> [cdcbaa] cdcbaa@yahoogroups.com
> > wrote:
>
>>
>>
>> Junior lien holder is entitled to a distribution like all the other
>> unsecureds in order to get rid of the lien; otherwise the lien survives the
>> bankruptcy.
>>
>>
>> On Monday, August 18, 2014, Michael Avanesian michael@avanesianlaw.com
>> [cdcbaa] > cdcbaa@yahoogroups.com
>> > wrote:
>>
>>>
>>>
>>> I am not aware of any cases.
>>>
>>> Sincerely,
>>> Michael Avanesian
>>>
>>> On Mon, Aug 18, 2014 at 4:35 PM, Alik Segal listserv.inbox@gmail.com
>>> [cdcbaa] wrote:
>>>
>>>>
>>>>
>>>> Michael,
>>>>
>>>> Are you aware of any cases on this issue?
>>>>
>>>> Alik
>>>> 310-751-0616
>>>>
>>>>
>>>> On Wed, Jul 30, 2014 at 11:07 PM, Michael Avanesian
>>>> michael@avanesianlaw.com [cdcbaa] wrote:
>>>>
>>>>>
>>>>>
>>>>> If you don't avoid a lien, it does not go away, so you must.
>>>>>
>>>>> Regarding whether the junior lienholder must be paid anything, I have
>>>>> witnessed a certain attorney talk opposing counsel for junior lienholder
>>>>> into withdrawing their opposition and thereby receiving nothing under a
>>>>> Chapter 11 Plan. However, it is a toss up as to whether one must or
>>>>> mustn't.
>>>>>
>>>>> As an aside, the ABI journal mandates that Chapter be lower case, that
>>>>> prepetition and postpetition be hyphenated, and that debtor-in-possession
>>>>> not contain hyphens!
>>>>> http://journal.abi.org/content/submission-guidelines I find it
>>>>> curious enough to share.
>>>>>
>>>>> Sincerely,
>>>>> Michael Avanesian
>>>>>
>>>>> On Wed, Jul 30, 2014 at 3:08 PM, Alik Segal listserv.inbox@gmail.com
>>>>> [cdcbaa] wrote:
>>>>>
>>>>>>
>>>>>>
>>>>>> Listmates,
>>>>>>
>>>>>> Debtor received chapter 7 discharge and subsequently filed a chapter
>>>>>> 11 case. Debtor has a property where the amount of the first lien is
>>>>>> greater than the fair market value. Thus the junior lien is fully
>>>>>> unsecured. Of course the debt underlying this fully unsecured junior lien
>>>>>> has been discharged in the recent chapter 7 case.
>>>>>>
>>>>>>
>>>>>>
>>>>>> Is the junior lien holder entitled to any payment in the chapter 11
>>>>>> plan where the lien is fully unsecured and the underlying debt has been
>>>>>> discharged in a chapter 7 liquidation?
>>>>>>
>>>>>> If the junior lien holder, in these circumstances is not entitled to
>>>>>> payment, is a lien strip motion required?
>>>>>>
>>>>>> --
>>>>>> Alik Segal
>>>>>> Alik.Segal@gmail.com
>>>>>> 310-362-6157
>>>>>> California Central District
>>>>>>
>>>>>>
>>>>>
>>>>
>>>>
>>>> --
>>>> Alik Segal
>>>> Alik.Segal@gmail.com
>>>> 310-362-6157
>>>> California Central District
>>>>
>>>>
>>>
>>
>> --
>> Giovanni Orantes, Esq.*
>> Orantes Law Firm, P.C.
>> 3435 Wilshire Blvd. Suite 2920
>> Los Angeles, CA 90010
>> Tel: (213) 389-4362
>> Fax: (877) 789-5776
>> e-mail: go@gobklaw.com
>> website: www.gobklaw.com
>>
>> *Board Certified - Business Bankruptcy Law - American Board of
>> Certification
>> *Board Certified - Consumer Bankruptcy Law - American Board of
>> Certification
>> Commercial Litigation
>> Estate Planning
>> Outside General Counsel
>>
>> WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
>>
>> SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN
>> BERNARDINO AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
>>
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>>
>
>
Giovanni Orantes, Esq.*
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 2920
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
*Board Certified - Business Bankruptcy Law - American Board of Certification
*Board Certified - Consumer Bankruptcy Law - American Board of Certification
Commercial Litigation
Estate Planning
Outside General Counsel
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
Note: The information contained in this e-mail message is confidential
information intended only for the use of the individual or entity named. If
the reader of this message is not the intended recipient or an agent
responsible for delivering it to the intended recipient, you are hereby
notified that any dissemination, distribution or copy of this communication
is strictly prohibited. If you have received this communication in error,
please immediately notify us by telephone or e-mail and delete the original
e-mail at (213) 389-4362 or (888) 619-8222.
IRS Circular 230 Disclosure: In order to comply with requirements imposed
by the Internal Revenue Service, we inform you that any U.S. tax advice
contained in this communication (including any attachments) is not intended
to be used, and cannot be used, for the purpose of (i) avoiding penalties
under the Internal Revenue Code or (ii) promoting, marketing, or
recommending to another party any transaction or matter addressed herein.
A lot depends on the judge, of course. With BB, you could not get around 1111(b)(1) - the lesser known "1111". Note that such section applies only to Chapter 11 though.On Monday, August 18, 2014, Michael Avanesian michael@avanesianlaw.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:
I think Gio is correct in that's how it usually works and probably how it's supposed to work. Whether, if in need of it to work another way you can get a particular judge or a circuit to go the other way, I think, is another story.
Here is an example:
The post was migrated from Yahoo.