What is the timeline for a Chapter 11 bankruptcy?

A Chapter 11 bankruptcy is a type of filing available to businesses in the state of Pennsylvania that allows them to reorganize their finances and repay creditors over time. The timeline for a Chapter 11 bankruptcy typically begins when the debtor files a voluntary petition with the bankruptcy court. Then, the court issues an order that appoints a trustee and authorizes creditors to file their claims with the court, which must be done within 90 days. Next, the court will usually issue an automatic stay, which prevents the creditors from taking collection action against the debtor while the bankruptcy is pending. Then, the debtor will have 120 days to submit a plan for reorganization to the court for approval. If the court approves the reorganization plan, the creditors will have 30 days to accept or reject the plan. If the creditors reject the plan, the debtor has 15 days to submit a revised one. The court will then hold a confirmation hearing to decide if the proposed plan is in the best interest of all parties involved and whether to approve the plan. If the reorganization plan is approved, the debtor will have 180 days to make payments to creditors in accordance with the plan. Once the debtor has made all payments and the creditors have received their funds, the court will issue a discharge order and the case will be closed. The entire Chapter 11 bankruptcy process typically takes up to a year or more, depending on the complexity of the case.

What is the timeline for a Chapter 11 bankruptcy?

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