Attorney or Party Name, Address, Telephone & FAX Nos., State Bar No. & Email Address FOR COURT USE ONLY Individual appearing without an attorney Attorney for: UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA In re: CASE NO.: CHAPTER 11 DIVISION CHAPTER 11 PLAN DATED ________, 20__ Confirmation Hearing/Status Conference Date: Time: Courtroom: Address: Debtor(s) This Chapter 11 Plan (Plan) proposes to restructure the financial affairs of the above-named Debtor(s) (collectively, Debtor). If confirmed, this Plan will bind all persons it provides for, whether or not they accept this Plan, object to confirmation, file a proof of claim or interest, or have their claims or interests allowed. Voting: You may be entitled to vote on this Plan. A Chapter 11 Disclosure Statement (Disclosure Statement) that accompanies this Plan explains the voting rules and provides additional information. Caution: Your rights may be affected. Read these papers carefully and discuss them with your attorney. (If you do not have an attorney, you may wish to consult one.) Effective date: This Plan becomes effective (Effective Date) on the 15th day following the entry of a nonstayed and non-appealed confirmation order on the docket, or, if that is not a business day, then the next business day. Exception: the Plan proponent may waive the condition that the confirmation order not be subject to a pending appeal. Definitions and rules of construction are as set forth in the Bankruptcy Code (11 U.S.C. section (§) 101 and following) and in the Federal Rules of Bankruptcy Procedure (FRBP or Rules). See §§ 101, 102 and 1101 and Rule 9001. All exhibits to this Plan are considered part of this Plan but, in the event of any conflict between this Plan and its exhibits, the terms of this Plan control. This form is optional. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2014 Page 1 F 3018-1.CH11.PLAN ARTICLE I. TREATMENT OF CLAIMS AND INTERESTS SUMMARY: Exhibit A to this Plan shows how claims and interests are treated, as qualified and explained below. A. Unclassified claims. Some claims are unclassified (because they cannot vote and, unless the claim holder agrees otherwise, their treatment is fixed by the Bankruptcy Code). These claims include costs of administering this bankruptcy case (Administrative Claims), such as professionals' fees and expenses. Administrative Claims bar date: The last day to file a request for payment of Administrative Claims is 28 days after the Effective Date or such other date as the court may order. B. Classified claims. All other claims and interests are separated into one of the following classes. Classes 1 and 2 are for claims "secured" by collateral ­ such as a mortgage/deed of trust (DOT), a secured car loan, or any other claim secured by a lien on property of the bankruptcy estate (Collateral). Class 3 is for "priority" unsecured claims, class 4 is for general (nonpriority) unsecured claims, and class 5 is for "interests" (defined below). All classes are divided into subclasses for each unique type of claim (class 1A, 1B, 2A, 2B, etc.). Class 1: Claims secured by principal residence. This class is reserved for claims secured only by real estate that is an individual Debtor's principal residence. If you hold that type of claim then it cannot be modified by this Plan unless you consent. See § 1123(b)(5). (If Debtor is not an individual, or if there is no such claim, then class 1 should be left blank.) Class 2: Other secured claims. If you hold a secured claim that is not in class 1, then this Plan may propose to modify your claim, as specified in Exhibit A. Modifications may include a new interest rate, a longer term for payment, etc., subject to limitations in the Bankruptcy Code. If the dollar amount of your claim exceeds the value of the Collateral, then your claim may be split (bifurcated) into (1) a secured claim equal to that value (in this class 2) and (2) an unsecured claim for the remainder, sometimes called the "deficiency" claim (in class 4, unless it is allowed as a priority claim in class 3). Exceptions: (a) Disputed valuation. If you wish to dispute the bifurcation/estimated value of the Collateral provided in Exhibit A then you must file a timely objection to confirmation of this Plan. Note: Your opportunity to object is intended only as a safeguard: the Plan proponent should resolve all valuation issues before soliciting any votes on this Plan. Valuation can be resolved by consent or by an order on a motion to value the Collateral. (b) Sale. If this Plan provides for a sale of the Collateral, then you may credit bid the full dollar amount of your claim, unless the court orders otherwise (§ 1129(b)(2)(A)(ii)). (c) § 1111(b). If you make a timely election under § 1111(b) (per Rule 3014) then, (i) notwithstanding any other provisions of this Plan your secured claim will not be reduced to the value of the Collateral (it will not be bifurcated), (ii) you will lose any unsecured deficiency claim, and (iii) you may be paid over a longer time with a lower interest rate but with more dollars, resulting as nearly as possible in the same estimated present value as if you had not made the election. The precise treatment is either included in the exhibits to the Plan and Disclosure Statement as an alternative or it will be provided as a supplement to this Plan at a time to be agreed upon between you and the Plan proponent, or as otherwise ordered by the court. The election is complex - most creditors do not make it, and before doing so you should consult your attorney (if you do not have an attorney, you may wish to consult one). Class 3: Priority Claims. A claim has "priority" if it is entitled to certain special treatment under § 507. For example, if Debtor owes you wages that you earned within 180 days before the bankruptcy petition was filed, then you may hold a priority claim for those unpaid wages. Class 4: General Unsecured Claims. If you hold a claim that is not secured and is not entitled to priority, then you hold a general unsecured claim. This class is divided into two subclasses. Class 4A contains all general unsecured claims other than any small claims in Class 4B (claims below the dollar This form is optional. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2014 Page 2 F 3018-1.CH11.PLAN amount specified in Exhibit A) that, for c