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

A “confirmation hearing” in a Chapter 11 bankruptcy is the final stage of the bankruptcy process. At this hearing, a judge will hear from all parties involved in the bankruptcy and then decide whether to approve the proposed reorganization plan. The confirmation hearing is an important part of the Chapter 11 bankruptcy process and must occur before the debtors can emerge out of bankruptcy. The first step of the confirmation hearing is for the judge to determine whether the proposed reorganization plan meets the requirements specified in the Bankruptcy Code. For example, the judge will review the reorganization plan to be sure it’s fair to all creditors, and that it provides for an equitable distribution of the assets among the creditors. The judge will also review the plan to make sure it’s in the best interests of the debtors. The second step of the confirmation hearing is for the creditors and debtors to present their arguments. The creditors will typically present their objections to the plan and propose their own solutions. The debtors will then present their case, showing why their proposed reorganization plan should be approved by the court. In California, the confirmation hearing typically lasts about an hour. The judge will then consider all of the evidence presented and decide whether or not to approve the proposed reorganization plan. If the plan is approved, the debtors can then move forward with their reorganization plan and emerge out of bankruptcy.

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

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