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

If you’ve filed for Chapter 11 Bankruptcy in New Jersey, then you must pay your creditors in accordance with the bankruptcy plan that you have proposed. During the proceeding, the bankruptcy court must approve the plan for the debtor to begin making payments. Depending on the facts of the case, some creditors may be paid in full, while others may only receive a partial payment or no payment at all. If the bankruptcy court approves the proposed plan for repayment, then it will create a payment schedule that the debtor must follow. Generally, the debtor must make regular payments to the court-appointed trustee, who will then distribute the payments to the creditors. Some payment plans may last for several years, and the debtor should review the plan and ensure they are making the payments on time. Additionally, the debtor must also be aware of certain types of debts that are considered priority debts and must be paid before any other debts. These priority debts include alimony, child support, taxes, and wages. These creditors should be paid in full before any other creditors. The debtor must consult with the bankruptcy court, lawyer, or trustee for more specific information on how to properly make payments to their creditors during the Chapter 11 process.

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

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