Solving the Solvent Debtor Exception

You represent a Chapter 11 debtor that is solvent and the debtor-client wants to discuss the terms of a plan of reorganization. The debtor-client asks if interest accrues on debts after a bankruptcy filing, and if so, at what rate.

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• Confirmation
  Review this practice note for the requirements for confirming a Chapter 11 plan.

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  See this practice note for a discussion of the mandatory and optional provisions of a Chapter 11 plan.

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  Read this practice note to understand the priority distribution scheme for the different types of claims in bankruptcy.

• Liquidation Analysis: Best Interest of Creditors Test
  Use this practice note when drafting the liquidation analysis for purposes of the best interest of creditors test.

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  Review this practice note for a discussion of a lender's rights to postpetition interest and other payments in a bankruptcy case.

• Oversecured Creditor's Right to Contractual Default-Rate Interest Allowed under State Law
  See this article for a discussion of a Bankruptcy Appellate Panel's decision to allow an oversecured creditor's claim for interest at the contractual default rate.

• Chapter 11 Plan Confirmation Resource Kit
  Use this resource kit for Practical Guidance materials on confirming a Chapter 11 plan, including detailed practice notes, forms, and checklists.

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