Home » Articles » Finance / Wealth

Bankruptcy Timeline - Filing Chapter 11 Bankruptcy

Bankruptcy Timeline - Filing Chapter 11 Bankruptcy
"""Under Chapter 11, the debtor must submit a plan of reorganization within 120 days of the filing of the bankruptcy petition. This scheme will provide for the repayment of secured loans over a period of five to ten years. After plan approval, the interest rate on such loans may be adjusted to the market rate. In the majority of proposed proposals, unsecured creditors receive less than the total amount of their claims.

The Chapter 11 plan classifies claims against the debtor, specifies the action to be taken for each class of claim, and outlines the plan's implementation. The proposal must be approved by the court of bankruptcy.

For confirmation of a Chapter 11 plan:

The proposal must originate with the creditor

2. The debtor must have creditor approval of the proposal

3. The confirmation hearing must be conducted to confirm or reject the aforementioned plan.

For confirmation, however, at least one class of impaired claims must approve the plan. Essentially, these are claims from creditors that will not be paid in full or whose legal rights are modified by the plan. Most critically, the court must ensure the plan's feasibility.

Discharge

Upon confirmation of the plan by the court, all debts are discharged under Chapter 11. The debtor repurchases all of his assets, and both he and his creditors are obligated by the terms of the approved plan.

The Bankruptcy Code rules and legal issues associated with the confirmation of a Chapter 11 plan are exceedingly complex and technical. Therefore, no business administrators or partners should attempt Chapter 11 bankruptcy without competent legal and financial counsel.

" - https://www.affordablecebu.com/
 

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"Bankruptcy Timeline - Filing Chapter 11 Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 109 times and generated 0 comments. The article was created on and updated on 01 June 2023.
Total comments : 0