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

In Utah, if you are filing for Chapter 11 bankruptcy, you are required to pay your creditors under the terms set out in your plan. The plan must be approved by the bankruptcy court before it can take effect. Typically, most people filing for a Chapter 11 bankruptcy will file a repayment plan. This is a plan outlining how much you are able to pay your creditors each month and how much you owe them in total. The amount you are able to pay your creditors is determined by the bankruptcy court and must meet a certain criteria. You must also adhere to the timeline set out in the repayment plan. This timeline will state when each payment is due, and your creditors will expect it to be paid on time. If your payments are late, your creditors may be able to file a motion with the court to have your repayment plan modified or rejected. Your creditors may also agree to an alternate payment plan, such as a lump sum payment or more frequent payments. This is usually dependent on the creditor’s position and the amount of money you owe them. Whatever plan is agreed upon, it must be approved by the bankruptcy court. If you are unable to adhere to the repayment plan, you may be liable for additional fees and charges and will likely be removed from the Chapter 11 bankruptcy process. It is important that you make all payments on time and in full to ensure that your repayment plan is successful.

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