Are payments on secured debts suspended in a Chapter 11 bankruptcy?

In Chapter 11 Bankruptcy Law in Arizona, payments for secured debts are neither fully suspended nor fully maintained. Chapter 11 bankruptcy allows the debtor to restructure their debt in a way that works best for them and their creditors. As part of the restructuring process, the debtor typically proposes a payment plan for their secured debts, such as a mortgage or a car loan. However, the creditors involved in the bankruptcy process can also propose a plan that is different from the debtor’s. The court must approve any plan before it is put into place. Depending on the creditor’s agreement to the debtor’s proposed plan, payments on secured debts may be allowed to continue, suspended for some time, adjusted to a lower amount, or even eliminated altogether. If the creditors agree to the proposed plan, then the payments will not be suspended, but will be maintained, often at a rate that is lower than before the filing of bankruptcy. Any payments made on secured debts after the filing of bankruptcy will go directly to the creditors rather than to the debtor.

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Are payments on secured debts suspended in a Chapter 11 bankruptcy?

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