
Classification of claims or interests.
a. Except as provided in subsection (b), a plan may place a claim or an interest in a particular class only if such claim or interest is substantially similar to other claims or interests of such claims.
b. A plan may designate a sep class of claims consisting only of every unsecured claim that is less than or reduced to an amount that the court approves as reasonable and necessary for admin convenience.
c. Possible ways to classify creditors:
(i) By legal rights: secured, unsecured, under-secured, priority, general, impaired, unimpaired, debt that was due immediately or over time. WON’T SEE SECURED AND UNSECURED IN THE SAME CLASS.
(ii) By dollar amounts
(iii) By the type of creditor you are and what relationship you will have w/ co going forward—that will have an effect on your interests. Ex. Lender v. Supplier. As a supplier you may want fast cash and then you will go away. As a lender, you may be willing to take less now, so you can it all later.
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