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Chapter 13 Discount Rates

Document Type

Article

Publication Date

2011

Publication Title

Norton Bankruptcy Law Adviser

Abstract

During the 33 years since enactment of the Bankruptcy Code, courts and commentators have been vexed by the problem of determining the present value of future payments to creditors proposed in a Chapter 13 debtor's plan. The issue central to this problem is the discount rate to be applied when conducting present-value analysis. While the Code unmistakably requires discounting of future payments as part of the process for confirming a plan, the Code does not specify the rate or the manner in which the rate should be calculated.

Keywords

Bankruptcy, Chapter 13

Publication Citation

Rafael I. Pardo, Chapter 13 Discount Rates, 8 Norton Bankr. L. Adviser 1 (2011)

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