Ten Years After BAPCPA: Continuing Questions in Cramdowns of Individual Chapter 11 Plans

Date

2015

Authors

Lumber, David J.

Journal Title

Journal ISSN

Volume Title

Publisher

Texas Tech Business & Bankruptcy Law Journal

Abstract

This article discusses the Bankruptcy Abuse and Consumer Protection Act of 2005 (BAPCPA), enacted to reduce serial bankruptcy filings and reduce the perceived manipulation and exploitation of the bankruptcy system to the detriment of creditors. The article raises the question of whether the absolute priority rule continues to apply when attempting to cram down a plan in individual Chapter 11 cases, and asks why are current wages and after-acquired property exempted from the absolute priority rule. Finally, the article concludes by offering two minor amendments in order to fully effectuate Congress’s intent in enacting BAPCPA.

Description

Keywords

BAPCPA, Cramdown, Absolute priority, Individual Chapter 11, Disposable income

Citation

2 Bus. & Bankr. L. J. 155