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

A confirmation hearing is an important step in a Chapter 11 bankruptcy process in Washington. This hearing is when the judge reviews the debtor’s proposed reorganization plan and decides whether or not to approve it. At the confirmation hearing, the debtor, creditors, and other interested parties may present evidence and arguments for why the plan should or should not be confirmed. The court will consider a variety of factors, such as whether the reorganization plan meets all technical and statutory requirements, the ability of the debtor to fund and implement the plan, the proposals made by creditors, the interests of both creditors and the debtor, and the feasibility of the plan. The judge may also consider the interests of other stakeholders such as employees, suppliers, and unions. The court will likely approve a plan if it meets all of the bankruptcy code requirements, is fair and equitable to creditors, is proposed in good faith, and is likely to be successful. If the judge does not approve of the plan, then the creditors and debtor may rework it and submit it for another hearing. The bankruptcy reorganization process can be lengthy and complex, but the confirmation hearing is an important step in completing the process.

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