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

A confirmation hearing in a Chapter 11 bankruptcy is a hearing before the court to review a reorganization plan. The purpose of the hearing is for the court to decide whether to approve the reorganization plan as proposed or order changes to the plan. The confirmation hearing is the final stage of the Chapter 11 process before a bankruptcy is discharged. At the confirmation hearing, the judge listens to arguments for and against the proposed reorganization plan. The debtor or debtor’s attorney presents the plan to the court and explains its provisions. Creditors may also submit evidence to support or oppose the plan. The court also reviews any objections to the plan, such as those from creditors who believe they are not receiving fair treatment under the plan. The court must carefully consider all of the evidence before it makes a decision about the plan. The judge examines the evidence to make sure that creditors will receive a fair amount of compensation under the plan and that it is in the best interests of all parties involved. Once the judge has reviewed all of the evidence and considered the arguments for and against the plan, the court will then either approve the plan as proposed or approve an amended version of the plan. If the court approves the plan, the debtor or debtors will then have the authority to move forward with the reorganization of their finances and repayment of their debts.

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

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