Comments on: Means Test & Creditors Claims: Enough is Enough http://www.bankruptcymastery.com/means-test-creditors-claims-enough-is-enough/ Becoming a better bankruptcy lawyer Tue, 31 Jan 2012 21:59:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Only consumer debtors take bankruptcy's means test http://www.bankruptcymastery.com/means-test-creditors-claims-enough-is-enough/comment-page-1/#comment-167 Only consumer debtors take bankruptcy's means test Fri, 26 Mar 2010 14:00:12 +0000 http://www.bankruptcymastery.com/?p=163#comment-167 [...] More on bankruptcy’s  means test [...] [...] More on bankruptcy’s  means test [...]

]]> By: Cathy Moran, Esq. http://www.bankruptcymastery.com/means-test-creditors-claims-enough-is-enough/comment-page-1/#comment-101 Cathy Moran, Esq. Thu, 04 Mar 2010 14:53:08 +0000 http://www.bankruptcymastery.com/?p=163#comment-101 The application of right to interest is most clear in the "best interests of creditors" test, which looks at the distribution in a hypothetical Chapter 7 case. See 726(a)(5). Where funding the plan is driven by income, I'm extrapolating that "best efforts" for high income debtors would include interest, to avoid a challenge for lack of "good faith". Gotta confess I haven't researched it. You're right that only creditors who file claims get paid, so a 100% plan is full payment to those who file. The application of right to interest is most clear in the “best interests of creditors” test, which looks at the distribution in a hypothetical Chapter 7 case. See 726(a)(5).

Where funding the plan is driven by income, I’m extrapolating that “best efforts” for high income debtors would include interest, to avoid a challenge for lack of “good faith”. Gotta confess I haven’t researched it.

You’re right that only creditors who file claims get paid, so a 100% plan is full payment to those who file.

]]> By: Gailyn Wink http://www.bankruptcymastery.com/means-test-creditors-claims-enough-is-enough/comment-page-1/#comment-99 Gailyn Wink Wed, 03 Mar 2010 23:37:52 +0000 http://www.bankruptcymastery.com/?p=163#comment-99 Cathy, I am confused about the application of the federal judgment rate to unsecured debt in a Chapter 13. Isn't the amount to be paid to unsecureds determined by proofs of claim filed, and isn't that amount then repaid (if a 100% plan) in full over the course of the plan? I do not see where the federal interest rate comes into the picture, please advise (code or case reference would be awesome). And thanks for the blog, I love the insight! Cathy, I am confused about the application of the federal judgment rate to unsecured debt in a Chapter 13. Isn’t the amount to be paid to unsecureds determined by proofs of claim filed, and isn’t that amount then repaid (if a 100% plan) in full over the course of the plan? I do not see where the federal interest rate comes into the picture, please advise (code or case reference would be awesome).

And thanks for the blog, I love the insight!

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