Your creditors may also attend that meeting and ask you questions about your company's financial condition. The creditor's committee consults with the debtor, investigates the debtor's conduct and financial condition, and participates in drafting the plan of reorganization. The debtor has the exclusive right to file a plan of reorganization for the first 120 days after filing. The plan of reorganization outlines how the debtor will deal with its creditors. The plan typically divides creditors into classes.
Creditors vote on the plan of reorganization.
Each class of creditors must accept the plan as it applies to that class. Plans may provide for payments to creditors over any reasonable period of time. Sometimes, payments on secured debts are extended over a period of twenty to thirty years. Confirmation of the plan vests all property of the estate in the debtor and discharges all debts and liens that arose before the confirmation date except as provided for in the plan. The debtor has 180 days from the filing of the petition to obtain acceptance of the plan by creditors.