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

A confirmation hearing is a hearing that occurs in a Chapter 11 bankruptcy case. It is typically held by the court in order to determine if a plan proposed by the debtor is fair and feasible. During a confirmation hearing, the court will hear testimony from both the debtor and any creditors that have an interest in the case. The court will then decide whether or not the proposed plan should be approved. Prior to the confirmation hearing, the debtor must submit a disclosure statement, which outlines all details of the proposed plan, such as the amount of debt being discharged, assets being liquidated, and other pertinent information. This document must be approved by the bankruptcy court before the hearing can take place. During the hearing, the court will review the disclosure statement and ask any questions about the proposed plan. After all questions have been answered, the court may decide to approve the plan and the debtor will begin the process of repaying their debt. The confirmation hearing is an important step in any Chapter 11 bankruptcy case and provides creditors with an opportunity to voice their concerns and ensure that the proposed plan is fair and feasible for all parties involved. It is also a necessary step in order for the debtor to be able to move forward with the repayment process.

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

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