Posted On: May 11, 2010

Chapter 11 plan of reorganization

A Sacramento bankruptcy lawyer answers a question on the specific components when filing a Chapter 11 bankruptcy plan of reorganization?

What are the specific components of a Chapter 11 plan of reorganization?

All bankruptcy law follows the same federal guidelines which are set forth in Title 11 of the United States Bankruptcy Code. A Chapter 11 bankruptcy is no different. The first and foremost requirement in a Chapter 11 plan of reorganization is what is known as ‘classification.’ All debts, secured and unsecured, must be given a label and all similar debts are clumped together to make the payments on secured and unsecured debts easier for the Trustee and the company.

A plan of reorganization must also identify those classes which are impaired. An impaired class is one which is adversely affected by the filing of the bankruptcy. An example of a class that is not impaired would be one where the terms of a contract between the creditor and debtor remain completely unaltered in the plan of reorganization. A class that is not impaired is presumed to have accepted the plan of reorganization.

Lastly, the plan of reorganization must provide a method in which the plan will be implemented, including prohibiting non-voting stock from being issued and a provision for office and director selection consistent with the interests of the creditors.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

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