{"id":2096,"date":"2016-06-01T12:57:46","date_gmt":"2016-06-01T12:57:46","guid":{"rendered":"https:\/\/www.rimonlaw.com\/?p=2096"},"modified":"2021-07-08T18:55:53","modified_gmt":"2021-07-08T18:55:53","slug":"insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law","status":"publish","type":"post","link":"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/","title":{"rendered":"Insights on Zachary vs. California Bank &#038; Trust Case published in Journal of Bankruptcy Law"},"content":{"rendered":"<p>Published in this issue of\u00a0<em>Pratt&#8217;s Journal of Bankruptcy Law,\u00a0<\/em><a href=\"https:\/\/www.rimonlaw.com\/attorneys\/pamela-marie-egan\" target=\"_blank\" rel=\"noopener\">Pamela Egan<\/a>\u00a0discusses a significant decision by the U.S. Court of Appeals for the Ninth Circuit holding that the Bankruptcy Abuse Prevention and Consumer Protection Act did not abrogate the absolute priority rule for individual chapter 11 debtors, but merely carved an exception.<\/p>\n<p><strong>The Ninth Gets It Right\u2014Absolute Priority Is the Code of the West Again<\/strong><\/p>\n<p>Bankruptcy is laced with colorful phrases and concepts: e.g., the indubitable equivalent; the hypothetical lien creditor; cram down; and the absolute priority rule. Recently, the U.S. Court of Appeals for the Ninth Circuit, in Zachary v. California Bank &amp; Trust, 811 F.3d 1191 (9th Cir. 2016), ruled on one of bankruptcy\u2019s colorful concepts, the absolute priority rule, and got it absolutely right.<\/p>\n<p><strong>The Absolute Priority Rule<\/strong><\/p>\n<p>Generally, the absolute priority rule means that if unsecured creditors are not paid in full, then equity cannot receive a penny. Similarly, unsecured creditors cannot receive a penny until secured creditors are paid in full. Unless the priority of creditors is adhered to absolutely, the plan is not \u201cfair and equitable\u201d and cannot be confirmed&#8230;<\/p>\n<p>You can access the full article from Lexis\u00a0<a href=\"https:\/\/rimon1.sharepoint.com\/:b:\/s\/MarketingDepartment2\/ERih7Q-Z3QxDufDXP5xOsD8BoNq4IX9rObzw-cSXwDWRWQ?e=A99HZU\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Published in this issue of\u00a0Pratt&#8217;s Journal of Bankruptcy Law,\u00a0Pamela Egan\u00a0discusses a significant decision by the U.S. Court of Appeals for the Ninth Circuit holding that the Bankruptcy Abuse Prevention and Consumer Protection Act did not abrogate the absolute priority rule for individual chapter 11 debtors, but merely carved an exception. The Ninth Gets It Right\u2014Absolute&hellip;<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[8],"tags":[785,782,786,784,787,783],"ppma_author":[2085],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Insights on Zachary vs. California Bank &amp; Trust Case published in Journal of Bankruptcy Law - Rimon Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Insights on Zachary vs. California Bank &amp; Trust Case published in Journal of Bankruptcy Law - Rimon Law\" \/>\n<meta property=\"og:description\" content=\"Published in this issue of\u00a0Pratt&#8217;s Journal of Bankruptcy Law,\u00a0Pamela Egan\u00a0discusses a significant decision by the U.S. Court of Appeals for the Ninth Circuit holding that the Bankruptcy Abuse Prevention and Consumer Protection Act did not abrogate the absolute priority rule for individual chapter 11 debtors, but merely carved an exception. The Ninth Gets It Right\u2014Absolute&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/\" \/>\n<meta property=\"og:site_name\" content=\"Rimon Law\" \/>\n<meta property=\"article:published_time\" content=\"2016-06-01T12:57:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-08T18:55:53+00:00\" \/>\n<meta name=\"author\" content=\"Rimon Law\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rimon Law\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/\",\"url\":\"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/\",\"name\":\"Insights on Zachary vs. California Bank & Trust Case published in Journal of Bankruptcy Law - Rimon Law\",\"isPartOf\":{\"@id\":\"https:\/\/www.rimonlaw.com\/#website\"},\"datePublished\":\"2016-06-01T12:57:46+00:00\",\"dateModified\":\"2021-07-08T18:55:53+00:00\",\"author\":{\"@id\":\"https:\/\/www.rimonlaw.com\/#\/schema\/person\/a2c63d24c3d79ad5e260a8252b8f4d4e\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.rimonlaw.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Insights on Zachary vs. California Bank &#038; Trust Case published in Journal of Bankruptcy Law\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.rimonlaw.com\/#website\",\"url\":\"https:\/\/www.rimonlaw.com\/\",\"name\":\"Rimon Law\",\"description\":\"Law Firm Evolved\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.rimonlaw.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.rimonlaw.com\/#\/schema\/person\/a2c63d24c3d79ad5e260a8252b8f4d4e\",\"name\":\"Rimon Law\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.rimonlaw.com\/#\/schema\/person\/image\/2049bd7d731ce64b232d1cb344a8e7ef\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b53c6e44a87df0ec1887222e831d5a78?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b53c6e44a87df0ec1887222e831d5a78?s=96&d=mm&r=g\",\"caption\":\"Rimon Law\"},\"sameAs\":[\"https:\/\/www.rimonlaw.com\"],\"url\":\"https:\/\/www.rimonlaw.com\/author\/rimonlaw\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Insights on Zachary vs. California Bank & Trust Case published in Journal of Bankruptcy Law - Rimon Law","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/","og_locale":"en_US","og_type":"article","og_title":"Insights on Zachary vs. California Bank & Trust Case published in Journal of Bankruptcy Law - Rimon Law","og_description":"Published in this issue of\u00a0Pratt&#8217;s Journal of Bankruptcy Law,\u00a0Pamela Egan\u00a0discusses a significant decision by the U.S. Court of Appeals for the Ninth Circuit holding that the Bankruptcy Abuse Prevention and Consumer Protection Act did not abrogate the absolute priority rule for individual chapter 11 debtors, but merely carved an exception. The Ninth Gets It Right\u2014Absolute&hellip;","og_url":"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/","og_site_name":"Rimon Law","article_published_time":"2016-06-01T12:57:46+00:00","article_modified_time":"2021-07-08T18:55:53+00:00","author":"Rimon Law","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Rimon Law","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/","url":"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/","name":"Insights on Zachary vs. California Bank & Trust Case published in Journal of Bankruptcy Law - Rimon Law","isPartOf":{"@id":"https:\/\/www.rimonlaw.com\/#website"},"datePublished":"2016-06-01T12:57:46+00:00","dateModified":"2021-07-08T18:55:53+00:00","author":{"@id":"https:\/\/www.rimonlaw.com\/#\/schema\/person\/a2c63d24c3d79ad5e260a8252b8f4d4e"},"breadcrumb":{"@id":"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.rimonlaw.com\/insights-on-zachary-vs-california-bank-trust-case-published-in-journal-of-bankruptcy-law\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.rimonlaw.com\/"},{"@type":"ListItem","position":2,"name":"Insights on Zachary vs. California Bank &#038; Trust Case published in Journal of Bankruptcy Law"}]},{"@type":"WebSite","@id":"https:\/\/www.rimonlaw.com\/#website","url":"https:\/\/www.rimonlaw.com\/","name":"Rimon Law","description":"Law Firm Evolved","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.rimonlaw.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.rimonlaw.com\/#\/schema\/person\/a2c63d24c3d79ad5e260a8252b8f4d4e","name":"Rimon Law","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.rimonlaw.com\/#\/schema\/person\/image\/2049bd7d731ce64b232d1cb344a8e7ef","url":"https:\/\/secure.gravatar.com\/avatar\/b53c6e44a87df0ec1887222e831d5a78?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b53c6e44a87df0ec1887222e831d5a78?s=96&d=mm&r=g","caption":"Rimon Law"},"sameAs":["https:\/\/www.rimonlaw.com"],"url":"https:\/\/www.rimonlaw.com\/author\/rimonlaw\/"}]}},"authors":[{"term_id":2085,"user_id":10,"is_guest":0,"slug":"rimonlaw","display_name":"Rimon Law","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/b53c6e44a87df0ec1887222e831d5a78?s=96&d=mm&r=g","user_url":"https:\/\/www.rimonlaw.com","last_name":"Law","first_name":"Rimon","description":""}],"_links":{"self":[{"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/posts\/2096"}],"collection":[{"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/comments?post=2096"}],"version-history":[{"count":0,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/posts\/2096\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/media?parent=2096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/categories?post=2096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/tags?post=2096"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/ppma_author?post=2096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}