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How long can a company remain in Chapter 11? Is there a timeframe given before they're forced into Chapter 7?

Asked over 2 years ago - Phoenix, AZ
Bankruptcy Chapter 11 Bankruptcy Chapter 7 Bankruptcy

Are the creditors the ones that decide how long a company has before they're forced into Chapter 7?

Once assets outweigh liabilties, are there are any other road bumps that will keep the company in Chapter 11 before they can re-org and emerge from BK? Any help would be appreciated. Thank you.


-Scott

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Attorney answers (1)

Reputation Level 9
Answered over 2 years ago. Foreclosure Attorney in Saint Clair Shores, MI.
No deadline, there is a deadline for proposal of a plan, but that can be extended by the Court for cause. Cases can be withdrawn or dismissed, or, converted to Chapter 7.
Whether the assets outweigh the liabilities is irrelevant.
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