Liquidation Analysis: Best Interest of Creditors Test

Summary

This practice note discusses the liquidation analysis for purposes of the best interests of creditors test under Section 1129(a)(7) of the Bankruptcy Code. Under Section 1129(a)(7), every impaired creditor and interest holder must either: (1) accept the plan or (2) receive at least as much value as the creditor or interest holder would receive in a Chapter 7 liquidation of the debtor.