9th CIRCUIT HOLDS ABSOLUTE PRIORITY RULE APPLIES IN INDIVIDUAL DEBTOR CHAPTER 11 CASES

In a major development affecting individual chapter 11 bankruptcy debtors, the 9th Circuit Court of Appeals has overruled earlier case law and ruled that the “absolute priority rule” under 11 U.S.C. § 1129(b)(2)(B)(ii) continues to apply to individual debtors following the 2005 BAPCPA amendments to the Bankruptcy Code.  See David K. Zachary v. California Bank… Continue reading 9th CIRCUIT HOLDS ABSOLUTE PRIORITY RULE APPLIES IN INDIVIDUAL DEBTOR CHAPTER 11 CASES