Plan of Reorganization

Last Updated: Jun 7, 2019

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In Chapter 11 bankruptcy, a plan that outlines how a debtor will pay back creditors over time. In order to move forward with a plan of reorganization, it must be accepted by creditors and confirmed by the court. The plan must be filed within 120 days from the date of the bankruptcy petition filing. If approved by a court, the plan may extend for up to 18 months. The classes of creditors categorized in the plan include secured creditors, priority unsecured creditors, general unsecured creditors, and equity security holders.