Creating a Bankruptcy Plan Essay Example | Topics and Well Written Essays - 500 words

Creating a Bankruptcy Plan - Essay Example assets and liabilities, a liquidation plan of reorganization stating the financial benefits for creditors, and approval of the plan by the company creditors. Within 20 days after filing, debtor meets the appointed bankruptcy trustee to discuss details of the reorganization plan. Within 30 to 45 days after filing, debtor meets creditors in a meeting presided over by trustee to agree on the payment plan proposed by debtor. Discussions, approval, or rejections by the creditors on the disclosure statement, proposed payment plan and analysis of the liquidation plan should be finalized not more than 120 days after filing. When the plan is approved, the debtor is discharged from any debt that arose before confirmation. After confirmation of plan, debtor is required to make payments as stated in the reorganization. A new contractual right replaces the pre-bankruptcy contracts. (Chapter 11) is â€Å"when one is unable to pay his debts any more. The bankruptcy law gives a person who is burdened with debts to have a new start by wiping out his/her debts.†(Maller-Barnes-Bowers-Langvardt, Chap. 20) A debtor is not given a discharge if he has not paid debts for taxes and debts related to committed crimes. or if there are â€Å"debts covered by a waiver of discharge executed by the debtor and approved by the court. An order of discharge cannot also be given to a debtor who has a judicial order to pay domestic support obligations unless he can certify that he is up to date in payments. (Mallor-Barnes-Bowers-Langvardt, Chap. 20) A debtor who has a confirmed plan for reorganization is allowed to request for modification of the plan anytime after its confirmation. According to Chapter 11 Bankruptcy code, modification is allowed if he/she has met some requirements of the Bankruptcy Code. This request will require the creditors’ consensus and approval of the court. Flynn, E, Bermant, G. and Burke, Virginia (2000). â€Å"Bankruptcy by the Numbers†. Executive Office for the