What is a “creditor’s exam” in a Chapter 11 bankruptcy?

A creditor’s exam is a hearing in a Chapter 11 bankruptcy in Florida that allows the court to question a creditor on the details of a debt owed to them by the debtor. The creditor’s exam is a part of the process of confirming a plan of reorganization. During the exam, the court, the debtor, and the creditor’s attorney will be present. During the exam, the court will ask the creditor questions about the debt owed, such as the amount, when it was incurred, and any other relevant details. The creditor is required to answer all the questions truthfully and accurately. The court may also ask the creditor what arrangements they would like to receive for the repayment of the debt. The court must also consider any evidence that may be presented to support the debtor’s plan of reorganization. The purpose of the creditor’s exam is to ensure that the creditor’s detailed information is accurately presented and tallied so that the debtor’s plan to reorganize debt is fair and equitable to all creditors involved. The court may also use the information to determine if the debt should be discharged, partially discharged, or remain intact. The outcome of the exam will be to the benefit of both the debtor and the creditor.

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What is a “creditor’s exam” in a Chapter 11 bankruptcy?

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