article thumbnail

Chapter 13 Bankruptcy and Student Loans

Sawin & Shea

Your student loans will also still accrue interest during this time. Reduces payment amounts: Amounts paid to your student loans and other unsecured creditors will often be significantly lower through a Chapter 13 bankruptcy.

article thumbnail

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] 7] In Farm Credit Services of America v.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

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
article thumbnail

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.