Dead Debtors and Other Consequences of Czyzewski v. Jevic Holding Corp. in Consumer Cases

By Lawrence R. Ahern, III

Background

In Chapter 11 cases in some jurisdictions, a debtor negotiating a settlement with a creditor has been given new tools. Management confronts a difficult process of reorganizing and confirming a plan in Chapter 11, on top of the costs associated with the case. The complex, if not arcane, requirements of section 1129 of the Bankruptcy Code can make confirmation seem to be an actual or practical impossibility for the debtor. The alternatives to reorganizing and obtaining a confirmed plan are two: conversion to Chapter 7 or . . .

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