Confirmation also triggers discharge except of those old debts restructured under the plan or those new debts created by the plan. Although not expressly stated in 1141, confirmation also terminates the automatic stay imposed by 11 U.S.C. 362. In re T.S.P Industries. Further, discharge of the debtr upon confirmation nullifies the need for a stay to protect the debtor and debtor's property. The confirmed plan that established the new legal and financial relationship between the parties is binding on both.
Creditors are free to collect lawfully obligations established by the plan.
Section 1144 governs revocation of confirmation. It provides that confirmation may be revoked only if an action for fraud is brought within 180 days of confirmation. Although a court may dismiss a case with a confirmed plan, confirmation will stand absent a timely showing of fraud. Section 349 sets forth the effects of dismissal. Upon consideration of these several Code provisions, the Court can find no benefit to the estate or creditors if these Chapter 11 cases are dismissed.