How does chapter 11 treat owners loan to the corporation 7 Answers as of August 01, 2011

Loan was secured by the building, UCC-1 was also filed.

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Heupel Law
Heupel Law | Kevin Heupel
Without knowing more it is difficult to answer the question, but if you properly filed the UCC-1, then it would be treated as a secured debt. If not, then it would be unsecured.
Answer Applies to: Colorado
Replied: 8/10/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Alot depends on when the loan was made and when the security agreement was perfected - furthermore, what were the loan proceeds used for? As an insider there will be alot more scrutiny of that secured transaction.
Answer Applies to: California
Replied: 8/1/2011
Apple Law Firm PLLC
Apple Law Firm PLLC | David Goldman
The owners are often treated differently if they have signed personal guarantees
Answer Applies to: Florida
Replied: 7/29/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
If the shareholders actually loaned money to the corporation in exchange for a security interest of equal value, then it is treated like any other secured debt. If the security interest is obtained within 2 years of filing and is not for equivalent value, then it is avoidable. There are factual issues as to what is equal value and what the intent was in obtaining the security interest.
Answer Applies to: California
Replied: 7/28/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
A loan secured by real estate and perfected must be treated in the chapter 11 plan so that the owner retains all rights.
Answer Applies to: California
Replied: 7/28/2011
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