How Creditors Get Paid Under a Chapter 11 Plan

Seal of the United States bankruptcy court. Ch...

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  • Obviously, the debtor doesn’t have sufficient ready funds to pay all creditors at the time of filing. Instead, an approved plan relies on future business earnings and profits to address creditor debts. The debt claims are prioritized with taxes owed being paid first. Secured claims will come next and unsecured debts follow third with partial payments.


About timothymccandless

Attorney at law, specializing in litigation, labor law overtime, criminal record expungement, partnership dissolution, and Real Estate workout solutions. Employment law claims and Wage and Hour claims Wrongful termination
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