The best interests of creditors or "liquidation test" is a requirement in reorganization bankruptcy, such as chapter 13, that creditors are not worse of than they would have been in chapter 7. In short, if a debtor's property would have provided money for creditors when sold in chapter 7, the debtor must propose to pay the same amount to creditors over the life of a chapter 13 plan.

liquidation test

Subscribe to RSS - Best-interests-of-creditors