What rights does a creditor have in a Chapter 11 bankruptcy?

Under Chapter 11 of Minnesota law, creditors have the right to be notified of the filing of a bankruptcy petition. Creditors are also entitled to receive the debtor’s plan of reorganization and may file objections to the plan if they choose to do so. Creditors also have the right to vote on the reorganization plan either in person or by proxy and to submit written ballots to the court. In addition, creditors have the right to be present at the meetings of creditors and to question the debtor regarding his or her financial affairs. Creditors may also examine any books, records, or assets of the debtor and file complaints regarding the debtor’s plan. Creditors may also participate in the negotiation of a plan and may be included in the distribution of any property or funds acquired from the debtor’s estate. Finally, creditors also have the right to receive any payments made by the debtor pursuant to a reorganization plan. These payments may be made directly to the creditor or through the bankruptcy trustee. It is important to note, however, that the amount paid to creditors may be reduced in the event that the debtor is unable to make full payments.

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What rights does a creditor have in a Chapter 11 bankruptcy?

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