What is a “claims resolution” process in a Chapter 11 bankruptcy?

A claims resolution process is a part of a Chapter 11 bankruptcy procedure in Mississippi. It is the process by which creditors and debtors come to an agreement on how the debt will be handled in the bankruptcy. In the claims resolution process, creditors will file a claim with the court for the debt they are owed. Once the claim is filed, it is reviewed and verified by the court. The debtor will then either agree to a settlement with the creditor, or the court will decide on how the debt should be handled. The court may opt to “discharge” the debt, which means the debt is wiped away completely and the creditor will no longer be able to collect on it. Alternatively, the court may “restructure” the debt, which means the creditor will agree to receive some of the debt in full, and the remainder will be restructured into a smaller and more manageable payment plan. In the claims resolution process, the debtor may also be able to negotiate a lower settlement amount with the creditor in some cases. The claims resolution process is an important step in finalizing a Chapter 11 bankruptcy, as it allows both the debtor and the creditor to come to an agreement on how the debt will be handled. It is important to remember that, in Mississippi, the court will always have the final say on how the debt will be resolved.

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What is a “claims resolution” process in a Chapter 11 bankruptcy?

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