best interests of creditors
best interests of creditors. Bankruptcy. A test for confirmation of a reorganization plan whereby the court inquires into whether the plan ensures that the value of property to be distributed to each creditor is at least the amount that the creditor would receive if the debtor’s estate were liquidated in a Chapter 7 case. • A court may not confirm a plan in a Chapter 9, Chapter 12, or Chapter 13 case unless it is in the best interests of the creditors. In a Chapter 11 case, a court may confirm a plan even though some creditors do not vote to accept it if the court finds that the plan is in the creditors’ best interest. 11 USCA §§ 944(7), 1129(a)(7), 1225(a)(4), 1325(a)(4). — Also written best interest of creditors.
