How long does a debtor have to confirm a plan in a Chapter 11 bankruptcy?

In Washington, a debtor in a Chapter 11 bankruptcy has four and a half months to confirm a plan. The confirmation process begins when the debtor files a plan of reorganization and disclosure statement with the court. The four and a half months includes a 30-day period in which creditors can object to the plan. A hearing is held to consider the objections and to determine if the plan is feasible. If the plan is found to be feasible, the court will issue an order confirming the plan. The order is legally binding and creditors must comply with the terms set forth in the plan. The debtor must also file a final confirmation hearing report with the court within 30 days of the confirmation hearing. The report must include a list of creditors and the amounts they are owed, a list of assets and liabilities, a schedule of payments and a description of the reorganization plan. Once the court has received and approved the report, the plan of reorganization is officially confirmed. It is important for the debtor to confirm a plan as soon as possible. If a plan is not confirmed within four and a half months after the petition is filed, the court can dismiss the case. The dismissal will have a negative financial impact on the debtor, so it is best to file the plan of reorganization and disclosure statement immediately and work to confirm the plan on time.

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How long does a debtor have to confirm a plan in a Chapter 11 bankruptcy?

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