Chapter 11 Fee Agreement

This chapter of the Bankruptcy Act generally provides for a restructuring that usually involves a capital company or partnership. A Chapter 11 debtor typically proposes a recovery plan to keep his affairs alive and pay creditors over time. Even in Chapter 11, businessmen or individuals can seek help. The voluntary petition contains typical information on the debtor`s name, social security number or tax identification number, place of residence, location of principal assets (if a business), plan or intention of the debtor to submit a plan, and a request for relief in accordance with the relevant chapter of the Bankruptcy Act. By submitting an optional chapter 11 discharge application or, in an involuntary case, the introduction of a discharge decision, the debtor automatically adopts an additional identity as a “debtor in possession.” 11 U.S.C 1101. The term refers to a debtor who, in the course of a Chapter 11 reorganization, retains possession and control of his property without the appointment of a case trustee. A debtor remains in the possession of a debtor until the debtor`s recovery plan is confirmed, the debtor`s case is rejected or converted to Chapter 7, or an agent is appointed in accordance with Chapter 11. The appointment or election of an agent is only involved in a small number of cases. As a general rule, the debtor, as a “debtor in possession,” manages the transaction and performs many of the functions that an agent performs in cases under other chapters.

11 U.S.C 1107 (a). Notwithstanding the introduction of the confirmation decision, the court has the power to take all other measures necessary to manage the estate. EDF. A. Bankr. P. 3020 (d). This authority would include confirmation of objections to objections or objection procedures that must be resolved before a plan can be fully completed.

Sections 1106 (a) (7) and 1107 (a) of the Bankruptcy Act required a debtor or agent to report on progress in implementing a plan, after confirmation of the status of the implementation of a plan. Upon confirmation, a Chapter 11 agent or debtor must complete a number of tasks, including the implementation of the plan, the closing status report and the request for a final decree. For individuals, Chapter 11 has some similarities to Chapter 13. For example, the estate of an individual debtor includes the debtor`s income and property acquired by the debtor after presentation until the matter is closed, dismissed or converted; Funding for the plan may come from the debtor`s future income; and the plan cannot be confirmed to a creditor`s objection without collecting the debtor`s full disposable income over a five-year period, unless the plan pays the debt in full and with interest over a shorter period. 11 U.S.C No. 1115, 1123 (a) (8), 1129 (a) (15). A Chapter 11 case can last many years, unless the court, the U.S. attorney, the committee or any other party act in the best interests of the timely resolution of the case. The right of creditors to submit a competing plan encourages the debtor to submit a plan within the exclusivity period and acts as a control of excessive delay in the case. Section 1112 (c) of the Bankruptcy Code provides an important exception to the transformation process in a Chapter 11 case. This provision prohibits the court from turning a case involving a farmer or a non-profit organization into a Chapter 7 liquidation case, unless the debt or conversion is requested.