Chapter 11 liquidating trustee
This period allows the debtor 120 days from the date of filing for chapter 11, to propose a plan of reorganization before any other party in interest may propose a plan.
Chapter 11 is a chapter of Title 11 of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States.
Chapter 11 bankruptcy is available to every business, whether organized as a corporation, partnership or sole proprietorship, and to individuals, although it is most prominently used by corporate entities.
Debtors are also protected from other litigation against the business through the imposition of an automatic stay.
While the automatic stay is in place, creditors are stayed from any collection attempts or activities against the debtor in possession, and most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue.
In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business.
Any residual amount is returned to the owners of the company. Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business.
If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims.
Like other forms of bankruptcy, petitions filed under chapter 11 invoke the automatic stay of § 362.
If at least one class of creditors votes against the plan and thus objects, the plan may nonetheless be confirmed if the requirements of cramdown are met.Tags: Adult Dating, affair dating, sex dating