Benefits For Bankruptcy Types

Understanding bankruptcy types and required legal disclosures

According to 11 U.S.C. Sec. 1125, debtors in these bankruptcy types must file ongoing reports identifying the disposition of assets, liabilities, contested claims and many other business affairs. The purpose of these disclosures is to allow creditors an opportunity to evaluate performance of proposed plans. The specific information required is determined on a case by case basis by the Court, and may include any information which the Court deems reasonable and necessary for parties in interest to reach informed decisions before voting on plan confirmation.

Different bankruptcy types require confirmation

All disclosure statements in these bankruptcy types must be in writing and filed with the Court. Once filed, the Court must schedule a hearing to determine if disclosures are adequate. Neither the debtor or parties in interest shall request approval of a reorganization plan until the Court approves these disclosure statements. 11 U.S.C. Sec. 1125(b).

Following the approval of the debtor's financial disclosure statement, all creditors in these bankruptcy types must be provided all disclosure statements, the proposed plan, notice of the time allowed to accept or reject the plan, time allowed for motions to object, and any other information deemed necessary by the Court. For more information on bankruptcy types, navigate to the Bankruptcy Types topic. For more information, see: