How Long It Takes to Emerge from Chapter 11
The duration of a Chapter 11 bankruptcy case can vary significantly, depending on the complexity of the case and the size of the business involved.
General Timeline
- Pre-Confirmation Phase: This phase typically lasts from six to twelve months, during which the debtor must file documents with the court, propose a reorganization plan, and negotiate with creditors. 57
- Post-Confirmation Phase: After the plan is confirmed, it usually takes three to five years to implement and carry out the plan, although this can vary. 25
Factors Affecting Duration
- Complexity: Larger and more complex cases can take longer, sometimes up to five years or more. 238
- Plan Approval: The process of confirming a reorganization plan can take several months to two years, depending on creditor objections and modifications. 34
- Claims Reconciliation: Resolving claims and prioritizing creditors can also extend the timeline. 3
Small Business Cases
- Subchapter V: Small businesses filing under Chapter 11, Subchapter V may have a shorter timeline due to streamlined procedures and shorter deadlines. 67