What happens at a Chapter 11 confirmation hearing?
At the confirmation hearing, the party proposing the plan, which is usually the debtor, must present evidence showing that the plan complies with the Chapter 11 confirmation requirements. A plan that has not been accepted by the holders of at least one class of impaired claims cannot be confirmed by the court.
What is the absolute priority rule in Chapter 11?
The Bankruptcy Code essentially requires that, absent consent, a senior class must be paid in full before junior classes of creditors and equity holders can receive any money or property under a Chapter 11 plan. This is called the “absolute priority rule.”
What is a cramdown in Chapter 11?
A cramdown is the imposition of a bankruptcy reorganization plan by a court despite any objections by certain classes of creditors. This provision reduces the amount owed to the creditor to reflect the fair market value of the collateral that was used to secure the original debt.
Will I lose my house if I file Chapter 11?
If you kept your house throughout the bankruptcy process, you are free to keep your home after the bankruptcy – as long as you continue to pay the mortgage. It may be that after you are free of all the rest of your debt you will be able to afford the mortgage payments easily. If so, you’ll be able to keep your house.
What does 11 U.S.Code § 1129 mean?
11 U.S. Code § 1129. Confirmation of plan The plan complies with the applicable provisions of this title. The proponent of the plan complies with the applicable provisions of this title. The plan has been proposed in good faith and not by any means forbidden by law.
What is unannotated title 11.bankruptcy § 1129?
11 U.S.C. § 1129 – U.S. Code – Unannotated Title 11. Bankruptcy § 1129. Confirmation of plan (1) The plan complies with the applicable provisions of this title. (2) The proponent of the plan complies with the applicable provisions of this title.
What is title 11, Section 1123 ( a )?
In addition assumption or rejection of an executory contract under a plan must comply with section 365 of title 11. Moreover, section 1123 (a) (1) has been substantively modified to permit classification of certain kinds of priority claims. This is important for purposes of confirmation under section 1129 (a) (9).
How is Section 1129 related to the Senate amendment?
Section 1129 (a) (10) is derived from section 1130 (a) (12) of the Senate amendment. Section 1129 (b) is new. Together with section 1111 (b) and section 1129 (a) (7) (C), this section provides when a plan may be confirmed, notwithstanding the failure of an impaired class to accept the plan under section 1129 (a) (8).