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7. Class 7 -- General Unsecured Claims Not <br /> Exceeding $200 <br /> Class 7 consists of each allowed general unsecured claim <br /> which does not exceed $200 in amount, including each allowed <br /> general unsecured claim exceeding $200 which is voluntarily reduced <br /> by the claim holder to the sum of $200. The Plan leaves Class 7 <br /> claims unimpaired, by distributing $200 in cash to each such claim <br /> on the Effective Date. <br /> The Debtor's bankruptcy schedules list only 20 creditors <br /> with claims of $200 or less, totalling only $1, 103. One reason to <br /> give full payment to creditors of $200 or less is to leave such <br /> creditors unimpaired, so that they do not have to receive voting <br /> materials or otherwise participate in the plan confirmation <br /> process. The small amount owed to many of these creditors barely <br /> justifies the cost of mailing plan materials to them. <br /> The Plan permits general creditors with claims greater <br /> than $200 to voluntarily elect treatment as Class 7 claimants by <br /> reducing the amount of their claim to $200. Because of the very <br /> limited distributions available to general unsecured creditors <br /> under the Plan, the Debtor anticipates that many creditors with <br /> claims greater than $200 will elect treatment as a Class 7 creditor <br /> in order to receive a fixed payment of $200. The Plan ballot which <br /> accompanies this Disclosure Statement contains a box in which <br /> general creditors with claims exceeding $200 may elect treatment as <br /> a Class 7 claim. <br /> If all general creditors with claims exceeding $200 but <br /> not exceeding $4,000 opted for treatment as a Class 7 creditor, the <br /> distribution to such creditor would equal or exceed the <br /> distribution which they would otherwise be likely to receive under <br /> the Plan. For example, in the absence of the Class 7 election, the <br /> holder of a $4,000 general unsecured claim would be classified as <br /> a Class 8 claim and would paid 5% of the claim, which is $200. <br /> Assuming that all scheduled general unsecured creditors <br /> with claims not exceeding $4,000 opted for treatment as Class 7 <br /> claims, the total number of creditors in Class 7 would be 111, and <br /> the total amount of their claims, prior to reduction to $200, would <br /> be $136, 168. The total amount distributed to these claims under <br /> the Plan would be $19,303. <br /> 8. Class 8 -- General Unsecured Claims Exceeding <br /> $200 But Not Exceeding $10,000 <br /> Class 8 consists of each general unsecured claim which <br /> does not exceed $10,000 in amount, including each general unsecured <br /> claim exceeding $10,000 which is voluntarily reduced by the claim <br /> holder to the sum of $10,000, but specifically excluding any claims <br /> in Classes 7, 10, 11 and 12. Class 8 claims shall be paid, on the <br /> 23 <br />