Plan Confirmation

Plan confirmation in bankruptcy is the process where a bankruptcy court approves a debtor's repayment plan. This plan outlines how the debtor intends to repay creditors over a specified period, often through reduced payments or adjustments. The court reviews the plan to ensure it meets legal requirements and is fair to all parties involved. Once confirmed, the plan becomes binding, meaning both the debtor and creditors must adhere to its terms. Successful confirmation is crucial for the debtor to move forward and potentially emerge from bankruptcy, allowing for a structured resolution of debts.