Some creditors are not entitled to postpetition interest on their claims. For example, general unsecured creditors typically don’t get postpetition interest pursuant to 11 U.S.C. § 502(b)(2).
Other creditors are entitled to postpetition interest.
I. Interest On Unsecured Priority Taxes
A. Chapter 11
For example, in Chapter 11 taxing authorities are entitled to postpetition
What is cash collateral? Perhaps the best starting point to understanding the concept is with a relatively common example. Suppose the debtor has a rental property encumbered by a mortgage. The note undoubtedly has an assignment of rents provision. This means that the creditor has a lien against the debtor’s stream of rent payments. That
This post assumes familiarity with my last post (part 1) of this multi-part series. Thus, while you can certainly read this post without reading that previous one, you’ll get more out of it if you read that post first.
III. Avoidance Of A Partially Or Wholly Unsecured Lien In Chapters 11 And 13
This is the first of a four part series on lien avoidance. I developed these notes for a presentation I gave to the Central District Consumer Bankruptcy Attorney’s Association, Los Angeles, California.
A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A lien serves
IV. The Constitutional Problem With A § 706(b) Motion
I thank Daniel Press, an attorney practicing in Virginia, Washington, DC, and Maryland, for giving me his notes, which served as an afflatus for some of today’s post.
A. Historical Background
1. The Chapter 13 Context
When Chapter 13 was enacted in 1978, it provided that
There is an alarming trend facing us, and it is not the latest teen-age fashions. It is the filing of motions pursuant to 11 U.S.C. § 706(b), to convert individual nonconsumer Chapter 7 cases to Chapter 11.
Because the topic of § 706(b) motions is a bit complicated, and requires some background information to
