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Solvent Debtors Must pay the Contractual Post-Petition Interest Rate on Unimpaired Claims

ABI

the United States Court of Appeals for the Ninth Circuit held that solvent-debtors are required to pay unimpaired creditors their bargained for post-petition interest rate. [1] 7] Generally, under the Bankruptcy Code, once a debtor files for bankruptcy, an unsecured claim no longer accrues interest. [8]

Debtor 40
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Decoding Chapter 12 Bankruptcy: Navigating the 20-Year Treasury Bond Rate vs. National Prime Rate Dilemma in Determining Discount Rates on Secured Creditor Claims

ABI

In a Chapter 12 bankruptcy, the debtor generally proposes a plan for repaying creditors from future earnings. [1] 1] Under a Chapter 12 plan, secured creditors will generally be paid in full, while unsecured creditors will often receive less than full payment. [2] The interest rate may be the subject of dispute.

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SURVIVING FINANCIAL DISTRESS FROM COVID-19 IN THE RESTAURANT, BAR, AND SERVICE INDUSTRY

BN Lawyers

You should consider the expenses for furloughed employees against the good-will that may accrue for keeping them on staff. Low Priority: Unsecured Lenders and other Creditors. Unsecured lenders should generally be willing to defer payments. No Priority: Distributions to Equity.