Can creditors contest a filing for Chapter 11 bankruptcy?

Yes, creditors can contest a filing for Chapter 11 bankruptcy in the state of California. This type of bankruptcy is generally used by businesses to reorganize their debts and keep their operations running. Under Chapter 11, the business files a plan with the court that outlines how they plan to pay back their creditors over a period of time. Once this plan is filed, the court will appoint a trustee to manage the process. Creditors are allowed to contest the plan if they feel it is not feasible or will not lead to them being repaid. If creditors contest the plan, the court will hear their objections and rule on the matter. Creditors can also contest a filing for Chapter 11 bankruptcy if they feel the business has falsely valued its assets or liabilities. They can also object to the plan if they believe the business has not made an effort to pay off the debts it has already incurred. If the court sides with the creditors, the court may order the business to pay back its creditors in full or modify the plan so that creditors get more money back. Ultimately, creditors can contest a Chapter 11 filing, but the court still has the final say in the matter.

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Can creditors contest a filing for Chapter 11 bankruptcy?

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