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

When going through a Chapter 11 bankruptcy in Pennsylvania, creditors must be paid according to the terms of the repayment plan that is specified during the bankruptcy filing. This plan is designed to help you pay off your debt in a way that is manageable to you and still allows creditors to receive the payments they are owed. The repayment plan will likely include a reorganization of your debt and the consolidation of multiple creditors into a single payment. The payment plan will also include any secured debt that is being renegotiated as well as unsecured debt. Depending on the amount of debt you have, you may have to make payments to your creditors each month over the course of three to five years. It is important to note that you must make all payments on the repayment plan in a timely and consistent manner in order to keep your Chapter 11 bankruptcy active and to maintain the ability to negotiate with creditors. This means that if you miss a payment or are late on a payment, you may be at risk of having your case dismissed due to lack of payment on the repayment plan. It is also important to adhere to any additional conditions that were specified in your repayment plan. This could include requirements like keeping current on any other obligations that you have, like car loans and mortgages, or providing documented proof to a court-appointed trustee that your expenses are accurate and current. These conditions must also be met in order to keep your bankruptcy active and to ensure you are allowed to negotiate with creditors.

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