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Crafting A Chapter 11 Plan: Timeline And Execution | Legal Guide 

Law Offices of Nicholas Gebelt
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Law Offices of Nicholas Gebelt
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The chronology is we file the petition, within the next 120 days we propound a plan along with a disclosure statement, minimum of 42 days after that, we have a hearing on the adequacy of the disclosure statement. If the judge gives us the two thumbs up, then we send out the documents to the creditors, they vote and they might have a month or so to return the ballots. If all goes well and the creditors vote in favor of the plan in a way that can be made precise, then the judge will confirm the plan and then the effective date of the plan is typically 15 days after the plan is confirmed and at that point, the debtor starts making payments to the creditors.
Now, I will say any secured debts that the debtor has, all payments that come due after the day we file the bankruptcy petition, the debtor has to make those payments on time, but debts that are pre-petition that is prior to filing the bankruptcy petition, those, the debtor doesn't make payments on until the plan is confirmed.
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17 сен 2024

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