When must I pay my creditors during a Chapter 11 bankruptcy?

The amount and timing of payments to creditors during a Chapter 11 bankruptcy in Florida depend on the type of bankruptcy claim being made. Generally, creditors are paid on a pro rata basis. This means that the debtor pays all unsecured creditors the same percentage of the amount owed to them. The payments to each creditor must be made within a certain amount of time and usually occur over a period of five years. In addition, during a Chapter 11 bankruptcy, the debtor must make regular payments to creditors in order to keep payments current. These payments are known as “plan payments” and must be made to all creditors that are included in the plan of reorganization. Depending on the size and complexity of the case, the court may also order the debtor to make payments to certain creditors before the case is officially closed. This type of payment is known as a “pre-liquidation distribution.” This means that the debtor must pay some of the creditors the full amount of their claims, even if the other creditors may not receive their full payments. In addition, the debtor must also pay certain expenses, such as attorney fees, to help with the reorganization process. The debtor may also have to pay creditors directly or through a third party, such as a trustee. Ultimately, the exact amount and timing of payments to creditors during a Chapter 11 bankruptcy in Florida will depend on the size and complexity of the case. However, creditors must generally be paid on a pro rata basis and the debtor must make regular payments throughout the process. Additionally, the debtor must pay certain expenses and may be required to make a pre-liquidation distribution prior to case closure.

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When must I pay my creditors during a Chapter 11 bankruptcy?

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