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

A confirmation hearing in a Chapter 11 bankruptcy is a court hearing in which the bankruptcy court reviews the proposed repayment plan of the debtor (borrower). The objective of the confirmation hearing is for the court to evaluate and determine if the repayment plan is feasible and if it is in accordance with the applicable bankruptcy laws. During the confirmation hearing, the debtor must present the evidence needed to support their plan. The creditors may also present their views. The court will also consider the proposed plan’s fairness towards creditors and other parties who may be affected by the repayment plan. At the end of the hearing, the court will decide if the repayment plan should be confirmed. If the court approves the plan, the terms of the plan become binding on the parties involved. The debtor is then required to fulfill their obligations, including making the payments to each creditor as outlined in the plan. In the state of Minnesota, there are specific state laws that must be taken into consideration when filing for Chapter 11 bankruptcy. It is important to make sure that the repayment plan proposed meets the requirements of Minnesota law in order for the court to approve the plan.

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

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