Anyone have any experiences with either a personal or small business chapter 11?
I would like to consider doing a 13, but there is a lien on our house in a jr position that is a problem. The lien is very large, way more than the house is worth). The lien was pledged as secured for our business loans with the creeditor.
The portion that is over the value, would put the unsecured value of our debt over the CH13 limits. If we look at a 7, (we pass the means test) we can get the debt possibly discharged, but the lien would still remain in place. From what I understand about a small busines or personal CH11, is that it is faster and cheaper than a regular CH11. The advantage for me is that it does allow for lien stripping, and their is no limit on the amount of unsecured like a CH13.
I know they are much more expensive than a 7 or 13. However, our 7 or 13 was probably going to be longer and more expensive due to the fact that the main creditor was going to be filing a very extensive adersarial proceeding. They cliam i misrepresented items AFTERr the loan had been going for years. May not that be much of a difference in the long run, especially if I can get the lien removed. Also, it seems as though there would be less of an issue with the creditor filing an adversarial proceeding. From what I read things in a CH11 aren't debated as much as to if they are dischargable or non-dischargable. They just fall into different classes, that get payed at different amounts. Is that somewhat correct?
From what I understand, we may not have to have a creditors comittee, which would also be good. I can't imagine our one large creditor going along with anything. Also, I read something that the US trustee has what they call cram down power. Essentailly, if what you are offering is better than what the creditor would have recived in a CH7 liquidation, the trustee can "cram down" or force the creditors to take the payment plan. Is this correct? If so, it would help us a lot!
I have tried to make the creditor settlement offers that are greater than the would havegottenin a CH 7. They won't even talk settlement to me. I would like to make my best effort to pay at least something back, and this small business CH11 seems like it might afford me that opportunity. Way more than a CH7 anyhow.
Anyone have any experiences with these types of CH11 cases? Do I still get to claim exemptions, and keep items? How long are the typical payment plans for in these cases? Any drawbacks to a Ch11, aside from the cost if our unsecured debt would be over the CH 13 limits due to the unsecured portion of the lien on our house? What happens if my income increases during the CH11 payment paln time period? Do I get to keep any of the increase, or does it all go to the creditors?
I would like to consider doing a 13, but there is a lien on our house in a jr position that is a problem. The lien is very large, way more than the house is worth). The lien was pledged as secured for our business loans with the creeditor.
The portion that is over the value, would put the unsecured value of our debt over the CH13 limits. If we look at a 7, (we pass the means test) we can get the debt possibly discharged, but the lien would still remain in place. From what I understand about a small busines or personal CH11, is that it is faster and cheaper than a regular CH11. The advantage for me is that it does allow for lien stripping, and their is no limit on the amount of unsecured like a CH13.
I know they are much more expensive than a 7 or 13. However, our 7 or 13 was probably going to be longer and more expensive due to the fact that the main creditor was going to be filing a very extensive adersarial proceeding. They cliam i misrepresented items AFTERr the loan had been going for years. May not that be much of a difference in the long run, especially if I can get the lien removed. Also, it seems as though there would be less of an issue with the creditor filing an adversarial proceeding. From what I read things in a CH11 aren't debated as much as to if they are dischargable or non-dischargable. They just fall into different classes, that get payed at different amounts. Is that somewhat correct?
From what I understand, we may not have to have a creditors comittee, which would also be good. I can't imagine our one large creditor going along with anything. Also, I read something that the US trustee has what they call cram down power. Essentailly, if what you are offering is better than what the creditor would have recived in a CH7 liquidation, the trustee can "cram down" or force the creditors to take the payment plan. Is this correct? If so, it would help us a lot!
I have tried to make the creditor settlement offers that are greater than the would havegottenin a CH 7. They won't even talk settlement to me. I would like to make my best effort to pay at least something back, and this small business CH11 seems like it might afford me that opportunity. Way more than a CH7 anyhow.
Anyone have any experiences with these types of CH11 cases? Do I still get to claim exemptions, and keep items? How long are the typical payment plans for in these cases? Any drawbacks to a Ch11, aside from the cost if our unsecured debt would be over the CH 13 limits due to the unsecured portion of the lien on our house? What happens if my income increases during the CH11 payment paln time period? Do I get to keep any of the increase, or does it all go to the creditors?
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