Secured Creditors
Secured creditors accept plan or receive
collateral or amount of secured claim: Each allowed secured claim
provided for by the plan must be treated by one of the following three
methods Bankruptcy code §1325(a)(5):
(1) The secured creditor accepts the plan Bankruptcy code § 1325(a)(5)(A)
(2) The bankruptcy debtor surrenders the collateral to the secured
creditor Bankruptcy code
§1325(a)(5)(C)]; or
(3) The plan preserves the creditor's lien on the collateral and
provides him with a distribution of cash installments or other property
having a present value, on the effective date of the plan, of at least
the amount of his allowed secured claim. Bankruptcy code §1325(a)(5)(B)]
As discussed earlier, a claim is treated as secured only up to the value
of the creditor's collateral Bankruptcy code §506(a); and for an over
secured creditor, the secured claim includes (as allowed by the court)
any attorney's fees, costs, or other charges agreed upon in the
contract, as well as post-petition interest. Bankruptcy code §506(b); In re
Colvin, 57 Bankruptcy Reporter 299 (Bankruptcy District of Utah 1986)
Present Value
In determining present value, many courts require the debtor to pay
interest at the "rate charged by institutional lenders for similar
commercial transactions" as the prevailing market rate. [In re Memphis
Partners, L.P.] in re Southern States Motor Inns, Inc.
Rancho Santa Fe
Rancho Santa Fe is an unincorporated census-designated
place in San Diego County, California, United States.
The population is at about 5,000 inhabitants currently.
It is the highest income community in the United States
with at least 2,500 households at $196,298. The Census
Designated Place is
generally considered a bedroom community with one
shopping avenue as well as several private schools and
single family residential areas situated on uncommonly
large lots.
The Pacific Bankruptcy Center assists the residents of Rancho Santa
Fe,
California in
filing for relief under the United States bankruptcy code. We are a debt
relief agency
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