Confirming Plan

After a Chapter 11 plan is confirmed by the court, the plan must be implemented and carried out, either by the debtor or by the successor to the debtor under the plan. If the plan calls for the debtor to be reorganized or for a new corporation to be formed, this function must be carried out first.

After confirmation, the trustee will begin paying the creditors listed in your Chapter 13 plan from the monthly payments you send in. It is crucial to the success of your case that you make timely and regular payments to the trustee.

Under Chapter 11 bankruptcy, the debtor and creditors can structure an orderly sale of assets, and provide for a quicker distribution of the sale proceeds than would occur under Chapter 7. A Chapter 11 bankruptcy can be filed by almost any corporation, partnership or individual.

Most take between six months and two years. The Chapter 11 filing fee is $1,717, but that's just the start since Chapter 11 bankruptcies are usually complicated. Expect to spend at least $10,000 on legal fees, though they have been known to run into the millions of dollars.

The Bankruptcy Code requires the court, after notice, to hold a hearing on confirmation of a plan. If no objection to confirmation has been timely filed, the Bankruptcy Code allows the court to determine whether the plan has been proposed in good faith and according to law.

At the confirmation hearing, the party proposing the plan, which is usually the debtor, must present evidence showing that the plan complies with the Chapter 11 confirmation requirements.A plan that has not been accepted by the holders of at least one class of impaired claims cannot be confirmed by the court.

A Chapter 11 bankruptcy reorganization plan lays out how the filer will pay their debt obligations moving forward. It gives the filer the chance to restructure and renegotiate the terms of paying back creditors.

The Confirmation Hearing Your Chapter 13 plan must be approved (confirmed) by the bankruptcy judge. The purpose of the confirmation hearing is for the bankruptcy court judge to determine the following: whether your plan is feasible and it's likely you'll be able to make the plan payments, and.