What is a “confirmation hearing” in a Chapter 11 bankruptcy?

A “confirmation hearing” is a court procedure that generally takes place in a Chapter 11 bankruptcy case. It is used to determine whether a debtor’s proposed bankruptcy plan should be confirmed, or approved, by the court. At the hearing, the debtor presents its plan to pay off debts and reorganize its business, and all parties involved in the case are allowed to express their opinion on the plan. If the court finds that the plan complies with all applicable laws, is feasible, and is in the best interests of creditors, then it will issue an order confirming the plan. The confirmation will bind all creditors to the terms laid out in the plan. The confirmation order is considered a final ruling and it cannot be changed unless all parties to the case agree to do so. In Alaska, the confirmation hearing is usually held in the bankruptcy court that handles the particular Chapter 11 case. All creditors who are affected by the restructuring are usually invited to the hearing and they are typically given an opportunity to raise any objections they may have to the plan. After the confirmation hearing is completed, the court may require additional hearings if it believes additional information is necessary. If the plan is confirmed, the debtor will then begin to make payments to its creditors according to the plan.

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What is a “confirmation hearing” in a Chapter 11 bankruptcy?

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