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(11/6/15 as amended) STATEMENT OF BASIS AND PURPOSESummary of the basis and purpose for the rule or rule change. (State what the rule says or does, explain why the rule or rule change is necessary
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A Chapter 11 plan is a detailed proposal for how a debtor intends to reorganize and pay off debts while continuing to operate the business. It outlines how creditors will be treated and repaid under the plan.
A debtor who has filed for Chapter 11 bankruptcy is required to file a reorganization plan. This can be an individual or a business entity seeking to restructure their debts.
To fill out a Chapter 11 plan, a debtor must follow specific forms and instructions provided by the bankruptcy court. This typically includes detailing the financial situation, proposed treatment of creditors, and the timeline for repayment.
The purpose of a Chapter 11 plan is to provide a legal framework for a debtor to reorganize their business or personal debts, allowing them to emerge from bankruptcy while addressing creditor claims.
The plan must report plans for asset management, projections of income and expenses, the treatment of secured and unsecured creditors, and timelines for repayment.
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