What is the process for reorganizing a business in a Chapter 11 bankruptcy?

The process for a business reorganizing a bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in Oklahoma is as follows: 1) The business must file a petition for bankruptcy with the federal bankruptcy court in the state of Oklahoma. 2) Once the petition is filed, an automatic stay is issued and all collection activities are stopped. 3) The business must submit a reorganization plan as part of the Chapter 11 filing. This plan must be approved by the court. 4) The plan must comply with the Bankruptcy Code and must include a repayment schedule, a disclosure statement, and voting requirements for creditors and other interested parties. 5) The court will then hold a meeting of creditors to discuss the plan and any objections to it. 6) If the court approves the plan, the business must then operate according to the provisions of the plan and make payments to creditors as outlined in the plan. 7) If the plan is successfully implemented, the business will receive a discharge from its debts, and the reorganization process is complete. During the reorganization process, a court-appointed trustee or examiner will oversee the business and ensure that the plan is being implemented correctly. Additionally, the debtor must also continue to file periodic reports with the court about the status of the reorganization.

Related FAQs

What is the process for reorganizing a business in a Chapter 11 bankruptcy?

Related FAQs

Related Blog Posts