Legal Question in Bankruptcy in California
Bankruptcy - Chapter 11 Final Decree
If a business filed for Chapter 11 bankruptcy in 1990 and a Final Decree was filed in 1995, does that mean that all the creditors were paid off?
1 Answer from Attorneys
Re: Bankruptcy - Chapter 11 Final Decree
You haven't provided enough information. When a business files a Chapter 11, it proposes a plan of reoganization that is voted on by the creditors. If approved by the court, it becomes a binding court order. If the final decree was entered, that usually means the plan was completed as approved. The creditors might have only received partial payment, but their rights are governed by the terms of the confirmed plan.
To get more specific advice, you should see a local bankruptcy attorney who can review the plan and advise you on specific questions about a particular creditor.
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