How long does it take to file for Chapter 11 bankruptcy?

Filing for Chapter 11 bankruptcy in Arizona typically takes about three to four months. Once filed, the case is monitored by a trustee who serves as a third-party representative for the court. During this process, debtors are required to provide a number of documents to the court, including a statement of their financial affairs, monthly income sources, assets, liabilities, and other financial records. The trustee also helps debtors identify potential relief options and negotiate with creditors. Once all the necessary documentation is collected, creditors are invited to a meeting where the debtor must provide an explanation of their financial circumstances and answer any questions creditors may have. If creditors agree to a plan of reorganization, the court will then review and confirm the plan, which can take several weeks to several months. Assuming the debtor can show that the reorganization plan is feasible, creditors will then vote on the plan. If the creditors vote in favor of the plan, the court will likely approve it and enter an order confirming the plan. This is known as confirmation, and this is how Chapter 11 bankruptcy is officially completed.

Related FAQs

How long does it take to file for Chapter 11 bankruptcy?

Related FAQs

Related Blog Posts