Cram Down Provisions in Miami
Answers from a Knowledgeable Business Bankruptcy Lawyer
Chapter 11 bankruptcy, it is key to create a plan to reorganize your business or estate in a
way that will satisfy, or come to satisfy, your debts to creditors. The
plan will have to be presented to the creditors for approval and is used
to assure them that you are taking the proper measures to pay them back.
However, when these creditors reject your plan, it can halt the Chapter
11 process. Fortunately for filers, there is still an option that can
force your plan into action. This is called the cram down provision.
At Orshan, P.A., we know how intimidating facing creditors and the courts
can be during Chapter 11 procedures. In many cases, a filer's livelihood
and future can rest in the balance of getting a Chapter 11 plan accepted.
That is why having an insightful and vigilant
Miami bankruptcy attorney is needed during this time. We can keep you aware of options like cram
down law to ensure that you are able to pursue a viable resolution to
If your Chapter 11 plan was rejected by creditors, then it is time to seek
out alternative options.
Contact us at Orshan, P.A. today to get counsel!
Requirements of a Cram Down Provision
To invoke the cram down provision, you must essentially assert to the court
that your Chapter 11 plan to pay off debt is actually viable, contrary
to what your creditors think. In order to get a request for cram down
approved, a judge must find that your plan meets certain requirements.
To qualify for cram down, a Chapter 11 plan must:
- Be equitable and meet the needs of the creditors
- Give creditors an amount that would satisfy in a Chapter 7 filing
- Not discriminate against creditors who are willing to accept less
To assess whether or not your plan gives you the ability to request a cram
down provision, seek experienced counsel from our Miami chapter 11 bankruptcy
lawyer. Paul L. Orshan, Esq. is an award-winning legal advocate with decades
of experience. He knows how to ensure a Chapter 11 plan is reasonable
and adequate and can work with you to resolve any issues with creditors.
Don't waste any more time! Call us today or fill out a
free bankruptcy evaluation online.