By Miriam R. Nemetz and Robert L. Bronston
Today the Supreme Court granted certiorari in one case of potential interest to the business community. Amicus briefs in support of the petitioners are due on Thursday, July 31, 2003, and amicus briefs in support of the respondent are due on Thursday, September 4, 2003.
Bankruptcy - Chapter 13 - Cram Down Interest Rates.
The Supreme Court granted certiorari in Till v. SCS Credit Corp., No. 02-1016, to decide the methodology of calculating the interest rate payable to a secured subprime creditor objecting to a Chapter 13 plan of reorganization.
Assuming all other requirements are met, when a debtor with a secured creditor files a Chapter 13 bankruptcy petition and intends to retain the collateral, the bankruptcy court must confirm the debtor’s reorganization plan if the secured creditor consents or the debtor invokes Chapter 13’s "cram down" provision. 11 U.S.C. § 1325(a)(5). The cram down provision requires the plan’s confirmation over
