How long does it take to get a plan of reorganization approved in a Chapter 11 bankruptcy?

In Virginia, the timeline for the plan of reorganization to be approved in a Chapter 11 bankruptcy can vary greatly depending on the complexity of the case and the number of creditors involved. Generally speaking, the plan of reorganization will need to be presented and discussed by the creditors, and will then be put up for a vote. If a majority of creditors agrees to the plan, then it will be approved by the court. This can take anywhere from a few months to a few years. Once the plan has been approved, the debtor will be required to submit a Disclosure Statement to the creditors and the court. This disclosure must include all relevant information, such as how assets and liabilities will be treated, how claims will be dealt with, and what payments or distributions will be made to creditors. Once the Disclosure Statement has been submitted and approved by the court, the plan of reorganization can go into effect. In some cases, a Chapter 11 bankruptcy filing may be converted to Chapter 7 bankruptcy if the debtor fails to obtain court approval for their plan of reorganization. If the debtor is successful however, the plan can usually be completed within a year or two after the case is filed.

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How long does it take to get a plan of reorganization approved in a Chapter 11 bankruptcy?

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