What Is a Plan of Reorganization in Chapter 11 Bankruptcy?
In Chapter 11, you’ll build what’s known as a plan of reorganization as a way to repay your creditors while retaining possession of your assets and remaining open for business. Read on to learn more about the components of your reorganization plan and what to expect once you’ve fulfilled the outlined terms.
How You Will Repay Your Creditors
Your plan of reorganization, or repayment plan, will include specific information regarding who your creditors are, their respective debts, and how you plan to pay off these debts. Generally speaking, your repayment plan will allow you to repay your creditors over three-to-five years.
Unfortunately, each of your creditors will have the opportunity to raise objections regarding your proposed plan of reorganization. Rest assured, your attorney will be sure to have the details we need to answer their concerns so your repayment plan can be approved as soon as possible.
What Happens Once the Terms of Your Repayment Plan Have Been Met?
After your repayment plan has been approved by the judge, it will become a binding agreement. You need to be sure that you can meet these obligations as outlined in your plan of reorganization for your bankruptcy process to be successful.
Once you have made each of these payments according to the approved schedule, any debts that remain are going to be discharged, and you will finally be living debt-free.
In the event that you are unable, at any point, to fulfill the obligations of your repayment plan, you may be able to request a hardship discharge through the court. These are rarely granted, but if the judge finds that you put forth your best effort and were not to blame for being unable to make these payments, then your remaining debts may be discharged and your bankruptcy case closed.
Contact a Vigo County Chapter 11 Bankruptcy Lawyer
If you’d like to learn more about Chapter 11 bankruptcy, other bankruptcy options, or need assistance writing your plan of reorganization, get help from a Vigo County Chapter 11 bankruptcy lawyer at Rowdy G. Williams Law Firm. Come in for your free case review as soon as possible by calling our office at 1-812-232-7400 or by completing the online contact form below.