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

Yes, payments on secured debts are suspended in a Chapter 11 bankruptcy in Mississippi. This is because when a debtor files for Chapter 11 bankruptcy protection, the court grants a stay that prevents creditors from taking any action to collect on outstanding debts. This stay also lasts until the court approves a plan for reorganization or until the court dismisses the case. For secured debts, Chapter 11 bankruptcy law also allows the debtor to retain possession of certain property that secures the debt. The court may also allow the debtor to enter into a new repayment plan with the creditor in order to keep the property. This repayment plan must be approved by the court before it can take effect. The goal of Chapter 11 bankruptcy in Mississippi is to give the debtor a chance to reorganize their finances so that they can eventually repay creditors. The court may also allow the debtor to modify secured debts, such as reducing the principal balance or interest rate on existing loans. In conclusion, Chapter 11 bankruptcy in Mississippi does suspend payments on secured debts. The court may also allow the debtor to negotiate and enter into new repayment plans with creditors in order to keep the secured property. The goal of Chapter 11 bankruptcy is to give the debtor a chance to reorganize their finances and eventually repay creditors.

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