United States Bankruptcy Court Northern District of California In re: Case No. Chapter 11 ________________/ [PROPOSED] COMBINED PLAN OF REORGANIZATION AND [APPROVED] [TENTATIVELY APPROVED] DISCLOSURE STATEMENT (date) INTRODUCTION This is Debtor's Combined Chapter 11 Plan of Reorganization and Disclosure Statement (the Plan). The Plan identifies each known creditor by name and describes how each claim will be treated if the Plan is confirmed. Part 1 contains the treatment of creditors with secured claims; Part 2 contains the treatment of general unsecured creditors: [select one of the following](__% of their allowed claims)(a prorata portion of $___, likely to result in a __% recovery of allowed claims) in (monthly/quarterly) payments over (number) (months/years). Taxes and other priority claims would be paid in full, as shown in Part 3. Most creditors (those in impaired classes) are entitled to vote on confirmation of the Plan. Completed ballots must be received by Debtor's counsel, and objections to confirmation must be filed and served, no later than [date]. The court will hold a hearing on confirmation of the Plan on [date] at [time]. Attached to the Plan are exhibits containing financial information that may help you decide how to vote and whether to object to confirmation. Exhibit 1 includes background information regarding Debtor and the events that led to the filing of the bankruptcy petition and describes significant events that have occurred during this Chapter 11 case. Exhibit 2 contains an analysis of how much creditors would likely receive in a Chapter 7 liquidation. Exhibit 3 shows Debtor's monthly income and expenses. Exhibit 4 describes how much Debtor is required to pay on the effective date of the plan. Exhibit 5 shows Debtor's monthly income and expenses related to each investment property. Individual Chapter 11 Combined Plan & Disclosure Statement -1May 4, 2012 American LegalNet, Inc. www.FormsWorkFlow.com Whether the Plan is confirmed is subject to complex legal rules that cannot be fully described here. You are strongly encouraged to read the Plan carefully and to consult an attorney to help you determine how to vote and whether to object to confirmation of the Plan. If the Plan is confirmed, the payments promised in the Plan constitute new contractual obligations that replace the Debtor's pre-confirmation debts. Creditors may not seize their collateral or enforce their pre-confirmation debts so long as Debtor performs all obligations under the Plan. If Debtor defaults in performing Plan obligations, any creditor can file a motion to have the case dismissed or converted to a Chapter 7 liquidation, or enforce their non-bankruptcy rights. Debtor will be discharged from all pre-confirmation debts (with certain exceptions) if Debtor makes all Plan payments. Enforcement of the Plan, discharge of the Debtor, and creditors' remedies if Debtor defaults are described in detail in Parts 5 and 6 of the Plan. PART 1: TREATMENT OF SECURED CREDITORS [select appropriate sections and delete those that are not applicable] Property to be Surrendered. Debtor will surrender the following collateral on the Effective Date of the Plan. The confirmation order will constitute an order for relief from stay. Any secured claim is satisfied in full through surrender of the collateral. Any deficiency claim is a general unsecured claim treated in Part 2. These secured claims are not impaired and are not entitled to vote on confirmation of the Plan. Class 1A Name of Creditor Description of Collateral Creditor's Rights Remain Unchanged. These creditors' legal, equitable, and contractual rights remain unchanged with respect to the following collateral. The confirmation order will constitute an order for relief from stay. These secured claims are not impaired and are not entitled to vote on confirmation of the Plan. Individual Chapter 11 Combined Plan & Disclosure Statement -2May 4, 2012 American LegalNet, Inc. www.FormsWorkFlow.com Class Name of Creditor Description of Collateral Debtor to Make Regular Payments and Pay Arrears Over Time. Debtor will pay the entire amount contractually due by making all post-confirmation regular monthly payments, and by paying all pre-confirmation arrears (including attorneys fees and late charges) with interest in [number] equal monthly payments, due the [number] day of the month, starting [month & year]. To the extent arrears are determined to be other than as shown below, appropriate adjustments will be made in the number of payments. Creditors in these classes may not repossess or dispose of their collateral so long as Debtor is not in material default under the Plan (defined in Part 6(b)). These secured claims are impaired and entitled to vote on confirmation of the Plan. [select one form of table and delete the other] Class Name of Creditor Collateral Regular Monthly Payment Estimated Arrears Interest Rate on Arrears Monthly Payment on Arrears Class Name of Creditor Collateral Regular Monthly Payment Estimated Arrears Interest Rate on Arrears Monthly Payment on Arrears Individual Chapter 11 Combined Plan & Disclosure Statement -3May 4, 2012 American LegalNet, Inc. www.FormsWorkFlow.com Debtor to Strip Lien to Value of Collateral and Pay Over Time. Debtor contends that the value of the collateral is less than the amount of the claim. Before confirmation, Debtor will obtain an order from the court determining the value of the collateral. Debtor will pay as a secured claim the amount equal to the value of the collateral. Debtor will pay the secured claim in full with interest from the Effective Date of the Plan through [number] equal monthly payments. Payments will be due on the [number] day of the month, starting [month & year]. Any remaining amount due is a general unsecured claim treated in Part 2. Creditors in these classes may not repossess or dispose of their collateral so long as Debtor is not in material default under the Plan (defined in Part 6(b)). The Court's Guidelines for Valuing and Avoiding Liens in Individual Chapter 11 Cases and Chapter 13 Cases will apply. These secured claims are impaired and are entitled to vote on confirmation of the Plan. Payments to claimants in these classes may continue past the date Debtor obtains a discharge. The claimant's rights against its collateral shall not be affected by the entry of discharge, but shall continue to be governed by the terms of this Plan. [select one form of table and delete the other]