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People typically think “LA Dodgers Bankruptcy” or “Hostess Bankruptcy” or “General Motors Bankruptcy” when hearing the term Chapter 11 bankruptcy. But let a California Chapter 11 bankruptcy attorney explain, and you will find that Chapter 11 bankruptcy also applies to people, such as individuals who are sole proprietors, business owners, or wage earners with either secured debt above $1,149,525.00 or unsecured debt beyond $383,175.00. In such cases, chapter 13 is not available. For such individuals, a chapter 11 may be the only option.
Creditors usually get to vote in chapter 11 cases. However, that isn’t necessarily true in individual, non-corporate, chapter 11 cases.
The 9th Circuit Bankruptcy Appellate Panel decided in In Re Friedman (March 19, 2012), that the absolute priority rule does not apply in an individual chapter 11 case. Why the distinction? Well, 11 U.S.C. Section 1129(b)(2)(B)(ii) says that for a class of unsecured claimants that ”the holder of any claim or interest that is junior to the claims of such class will not receive or retain under the plan on account of such junior claim or interest any property, except that in a case in which the debtor is an individual, the debtor may retain property included in the estate under section 1115, subject to the requirements of subsection (a)(14) of this section.”
Typically, the absolute priority rule comes into play if there is one impaired class of claims that does not accept the plan. That means a chapter 11 plan will not be crammed down on unsecured creditors unless the debtor, as the equity interest holder, gets nothing under the plan. The reason for this absolute priority rule is to promote fairness.
In Friedman, the court mentioned using “common sense” in determining whether the absolute priority rule applies in individual cases. The court found that it had to first look at the language within the bankruptcy code to determine whether the absolute priority rule applies. The court found nothing contrary to hold that the absolute priority rule apply in individual cases based on the language of the applicable statutes. It also found it incongruous that a chapter 11 individual debtor had to submit equivalent value of 5 years of disposable income under 1129(a)(15) yet have the absolute priority rule still apply. Moreover, the court noted the semblance of newly added statutes for chapter 11 cases that closely mirrored chapter 13 rules for individual cases.
The Friedman court concluded with this thought: “When decicisions have gone further than exercising a plain reading of the statute, they have entered into speculative analyses that are fatally flawed.” Thus, at least for now, the 9th Circuit BAP has concluded the absolute priority rule does not apply – however it is unclear whether 9th Circuit Bankruptcy Judges are even bound by BAP opinions so the magnitude of this case has yet to be determined. Stay tuned.
Attorney Jeffrey C. Hsu handles consumer and small business bankruptcy law. He can also help you as a California Chapter 11 Bankruptcy Attorney. His experience includes having worked for a former Chapter 7 Trustee, serving as judicial extern to a Los Angeles Bankruptcy Judge, and completing a clinical internship with the U.S. Trustee’s Office. Mr. Hsu also successfully participated at the 17th Annual Duberstein National Bankruptcy Moot Court Competition. Call today to schedule your free consultation at 626-999-5959 or email him at [email protected]. His law office internet website can be found at www.jchfirm.com.
People typically think “LA Dodgers Bankruptcy” or “Hostess Bankruptcy” or “General Motors Bankruptcy” when hearing the term Chapter 11 bankruptcy. But let a California Chapter 11 bankruptcy attorney explain, and you will find that Chapter 11 bankruptcy also applies to people, such as individuals who are sole proprietors, business owners, or wage earners with either secured debt above $1,149,525.00 or unsecured debt beyond $383,175.00. In such cases, chapter 13 is not available. For such individuals, a chapter 11 may be the only option.
Creditors usually get to vote in chapter 11 cases. However, that isn’t necessarily true in individual, non-corporate, chapter 11 cases.
The 9th Circuit Bankruptcy Appellate Panel decided in In Re Friedman (March 19, 2012), that the absolute priority rule does not apply in an individual chapter 11 case. Why the distinction? Well, 11 U.S.C. Section 1129(b)(2)(B)(ii) says that for a class of unsecured claimants that ”the holder of any claim or interest that is junior to the claims of such class will not receive or retain under the plan on account of such junior claim or interest any property, except that in a case in which the debtor is an individual, the debtor may retain property included in the estate under section 1115, subject to the requirements of subsection (a)(14) of this section.”
Typically, the absolute priority rule comes into play if there is one impaired class of claims that does not accept the plan. That means a chapter 11 plan will not be crammed down on unsecured creditors unless the debtor, as the equity interest holder, gets nothing under the plan. The reason for this absolute priority rule is to promote fairness.
In Friedman, the court mentioned using “common sense” in determining whether the absolute priority rule applies in individual cases. The court found that it had to first look at the language within the bankruptcy code to determine whether the absolute priority rule applies. The court found nothing contrary to hold that the absolute priority rule apply in individual cases based on the language of the applicable statutes. It also found it incongruous that a chapter 11 individual debtor had to submit equivalent value of 5 years of disposable income under 1129(a)(15) yet have the absolute priority rule still apply. Moreover, the court noted the semblance of newly added statutes for chapter 11 cases that closely mirrored chapter 13 rules for individual cases.
The Friedman court concluded with this thought: “When decicisions have gone further than exercising a plain reading of the statute, they have entered into speculative analyses that are fatally flawed.” Thus, at least for now, the 9th Circuit BAP has concluded the absolute priority rule does not apply – however it is unclear whether 9th Circuit Bankruptcy Judges are even bound by BAP opinions so the magnitude of this case has yet to be determined. Stay tuned.
Attorney Jeffrey C. Hsu handles consumer and small business bankruptcy law. He can also help you as a California Chapter 11 Bankruptcy Attorney. His experience includes having worked for a former Chapter 7 Trustee, serving as judicial extern to a Los Angeles Bankruptcy Judge, and completing a clinical internship with the U.S. Trustee’s Office. Mr. Hsu also successfully participated at the 17th Annual Duberstein National Bankruptcy Moot Court Competition. Call today to schedule your free consultation at 626-999-5959 or email him at [email protected]. His law office internet website can be found at www.jchfirm.com.
The post CHAPTER 11 BANKRUPTCY ISN’T JUST ABOUT BASEBALL & TWINKIES! ASK A CALIFORNIA CHAPTER 11 BANKRUPTCY ATTORNEY. appeared first on JCH LAW FIRM.
People typically think “LA Dodgers Bankruptcy” or “Hostess Bankruptcy” or “General Motors Bankruptcy” when hearing the term Chapter 11 bankruptcy. But let a California Chapter 11 bankruptcy attorney explain, and you will find that Chapter 11 bankruptcy also applies to people, such as individuals who are sole proprietors, business owners, or wage earners with either secured debt above $1,149,525.00 or unsecured debt beyond $383,175.00. In such cases, chapter 13 is not available. For such individuals, a chapter 11 may be the only option.
Creditors usually get to vote in chapter 11 cases. However, that isn’t necessarily true in individual, non-corporate, chapter 11 cases.
The 9th Circuit Bankruptcy Appellate Panel decided in In Re Friedman (March 19, 2012), that the absolute priority rule does not apply in an individual chapter 11 case. Why the distinction? Well, 11 U.S.C. Section 1129(b)(2)(B)(ii) says that for a class of unsecured claimants that ”the holder of any claim or interest that is junior to the claims of such class will not receive or retain under the plan on account of such junior claim or interest any property, except that in a case in which the debtor is an individual, the debtor may retain property included in the estate under section 1115, subject to the requirements of subsection (a)(14) of this section.”
Typically, the absolute priority rule comes into play if there is one impaired class of claims that does not accept the plan. That means a chapter 11 plan will not be crammed down on unsecured creditors unless the debtor, as the equity interest holder, gets nothing under the plan. The reason for this absolute priority rule is to promote fairness.
In Friedman, the court mentioned using “common sense” in determining whether the absolute priority rule applies in individual cases. The court found that it had to first look at the language within the bankruptcy code to determine whether the absolute priority rule applies. The court found nothing contrary to hold that the absolute priority rule apply in individual cases based on the language of the applicable statutes. It also found it incongruous that a chapter 11 individual debtor had to submit equivalent value of 5 years of disposable income under 1129(a)(15) yet have the absolute priority rule still apply. Moreover, the court noted the semblance of newly added statutes for chapter 11 cases that closely mirrored chapter 13 rules for individual cases.
The Friedman court concluded with this thought: “When decicisions have gone further than exercising a plain reading of the statute, they have entered into speculative analyses that are fatally flawed.” Thus, at least for now, the 9th Circuit BAP has concluded the absolute priority rule does not apply – however it is unclear whether 9th Circuit Bankruptcy Judges are even bound by BAP opinions so the magnitude of this case has yet to be determined. Stay tuned.
Attorney Jeffrey C. Hsu handles consumer and small business bankruptcy law. He can also help you as a California Chapter 11 Bankruptcy Attorney. His experience includes having worked for a former Chapter 7 Trustee, serving as judicial extern to a Los Angeles Bankruptcy Judge, and completing a clinical internship with the U.S. Trustee’s Office. Mr. Hsu also successfully participated at the 17th Annual Duberstein National Bankruptcy Moot Court Competition. Call today to schedule your free consultation at 626-999-5959 or email him at [email protected]. His law office internet website can be found at www.jchfirm.com.
The post CHAPTER 11 BANKRUPTCY ISN’T JUST ABOUT BASEBALL & TWINKIES! ASK A CALIFORNIA CHAPTER 11 BANKRUPTCY ATTORNEY. appeared first on JCH LAW FIRM.
Need a Rowland Heights Bankruptcy Attorney? Contact me, Attorney Jeffrey C. Hsu, with JCH LAW FIRM. I can assist clients in the Rowland Heights area in its surrounding communities as we service the San Gabriel Valley area and all surrounding Southern California communities. Our office is in the heart of the San Gabriel Valley region in Alhambra, CA. Call us today at 626-999-5959 or email us at [email protected] to set up your free consultation today!
My focus is on each and everyone of my clients. I meet with each client and make sure that the bankruptcy process is right for them. At JCH LAW FIRM, we can help whether your case is simple or complex, whether you are an individual, or a business owner. Regardless of circumstance, I will walk you through the bankruptcy process, whether it’s chapter 7, chapter 11, chapter 13, chapter 12, or otherwise. Believe it or not, you can even be forced into bankruptcy if your creditors force you into an involuntary bankruptcy – I can help with that too.
Clients are welcome to call me to set up an appointment at my office and work together in person, or we can work together and use technology to handle most of the process over the phone and online. We help debtors, creditors, and third parties through the bankruptcy process. Call today at 626-999-5959 and I look forward to meeting with you to assist you as your Rowland Heights bankruptcy attorney.
The post JCH LAW FIRM = Your Rowland Heights Bankruptcy Attorney appeared first on JCH LAW FIRM.
Need a Rowland Heights Bankruptcy Attorney? Contact me, Attorney Jeffrey C. Hsu, with JCH LAW FIRM. I can assist clients in the Rowland Heights area in its surrounding communities as we service the San Gabriel Valley area and all surrounding Southern California communities. Our office is in the heart of the San Gabriel Valley region in Alhambra, CA. Call us today at 626-999-5959 or email us at [email protected] to set up your free consultation today!
My focus is on each and everyone of my clients. I meet with each client and make sure that the bankruptcy process is right for them. At JCH LAW FIRM, we can help whether your case is simple or complex, whether you are an individual, or a business owner. Regardless of circumstance, I will walk you through the bankruptcy process, whether it’s chapter 7, chapter 11, chapter 13, chapter 12, or otherwise. Believe it or not, you can even be forced into bankruptcy if your creditors force you into an involuntary bankruptcy – I can help with that too.
Clients are welcome to call me to set up an appointment at my office and work together in person, or we can work together and use technology to handle most of the process over the phone and online. We help debtors, creditors, and third parties through the bankruptcy process. Call today at 626-999-5959 and I look forward to meeting with you to assist you as your Rowland Heights bankruptcy attorney.
Need a Rowland Heights Bankruptcy Attorney? Contact me, Attorney Jeffrey C. Hsu, with JCH LAW FIRM. I can assist clients in the Rowland Heights area in its surrounding communities as we service the San Gabriel Valley area and all surrounding Southern California communities. Our office is in the heart of the San Gabriel Valley region in Alhambra, CA. Call us today at 626-999-5959 or email us at [email protected] to set up your free consultation today!
My focus is on each and everyone of my clients. I meet with each client and make sure that the bankruptcy process is right for them. At JCH LAW FIRM, we can help whether your case is simple or complex, whether you are an individual, or a business owner. Regardless of circumstance, I will walk you through the bankruptcy process, whether it’s chapter 7, chapter 11, chapter 13, chapter 12, or otherwise. Believe it or not, you can even be forced into bankruptcy if your creditors force you into an involuntary bankruptcy – I can help with that too.
Clients are welcome to call me to set up an appointment at my office and work together in person, or we can work together and use technology to handle most of the process over the phone and online. We help debtors, creditors, and third parties through the bankruptcy process. Call today at 626-999-5959 and I look forward to meeting with you to assist you as your Rowland Heights bankruptcy attorney.
Need a Rowland Heights Bankruptcy Attorney? Contact me, Attorney Jeffrey C. Hsu, with JCH LAW FIRM. I can assist clients in the Rowland Heights area in its surrounding communities as we service the San Gabriel Valley area and all surrounding Southern California communities. Our office is in the heart of the San Gabriel Valley region in Alhambra, CA. Call us today at 626-999-5959 or email us at [email protected] to set up your free consultation today!
My focus is on each and everyone of my clients. I meet with each client and make sure that the bankruptcy process is right for them. At JCH LAW FIRM, we can help whether your case is simple or complex, whether you are an individual, or a business owner. Regardless of circumstance, I will walk you through the bankruptcy process, whether it’s chapter 7, chapter 11, chapter 13, chapter 12, or otherwise. Believe it or not, you can even be forced into bankruptcy if your creditors force you into an involuntary bankruptcy – I can help with that too.
Clients are welcome to call me to set up an appointment at my office and work together in person, or we can work together and use technology to handle most of the process over the phone and online. We help debtors, creditors, and third parties through the bankruptcy process. Call today at 626-999-5959 and I look forward to meeting with you to assist you as your Rowland Heights bankruptcy attorney.
The post JCH LAW FIRM = Your Rowland Heights Bankruptcy Attorney appeared first on JCH LAW FIRM.
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
Quality Engineered Installation, Inc. v. Higley S., Inc., 670 So.2d 929 (Fla. 1996) resolved a conflict among the Florida District Courts of Appeal and held that an award of prejudgment interest merges into and becomes part of a single total sum adjudged to be due and owing and as such the amount awarded for prejudgment interest, like all other components of the judgment, automatically bears interest as provided by section 55.03, Florida Statutes. The Florida Third District Court of Appeals, in Westport Recovery Corp. vs. Batista, 32 Fla.L.Weekly D2173 (Fla. 3rd. DCA 2007) applied the Quality Engineered decision and held that a writ of execution on a judgment had not been fully paid as the Sheriff had not collected postjudgment interest due on the awarded prejudgment interest. The Third District Court of Appeal also held that the Quality Engineered decision applies retroactively.Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
As reviewed in this blog previously, the present Chapter 13 bankruptcy laws allow a homeowner to avoid his second mortgage if it is not a "secured claim" - meaning that there is no equity to secure the second mortgage holder's lien. In other words, the second mortgagee is wholly underwater. Under section 506 of the bankruptcy code, the lien of the second mortgagee would be wholly avoided and deemed a wholly unsecured claim. In many or most cases in Miami homes, the second mortgage is wholly "underwater" as it was typically made in the amount of 20% of the value at the time of the loan and values have fallen so dramatically. Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
As reviewed in this blog previously, the present Chapter 13 bankruptcy laws allow a homeowner to avoid his second mortgage if it is not a "secured claim" - meaning that there is no equity to secure the second mortgage holder's lien. In other words, the second mortgagee is wholly underwater. Under section 506 of the bankruptcy code, the lien of the second mortgagee would be wholly avoided and deemed a wholly unsecured claim. In many or most cases in Miami homes, the second mortgage is wholly "underwater" as it was typically made in the amount of 20% of the value at the time of the loan and values have fallen so dramatically. Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
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