bankruptcy plan confirmation
The ultimate goal of a chapter 11 bankruptcy is:?
A. to adjust secured debts
B. to eliminate all existing debt and start the business “fresh”
C. the confirmation of the Plan of Reorganization
D. to enhance the position of equity security holder.
The best answer is B, although it’s far from perfect. A Chapter 11 reorganization is designed to give a business a fresh start, but does not necessarily – or even usually – eliminate all existing debt. The confirmation of the Plan isn’t the goal – it’s a milestone, and A and D are equally off the mark.
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Property of the estate after confirmation of a Chapter 13 repayment plan: Balancing competing interests (Student papers / University of Washington, School of Law) … |
