Consequently, the Court concludes that Debtors' Chapter 11 cases shall not be dismissed for bad faith. A Chapter 11 case with a confirmed plan also may be dismissed if the debtor has materially defaulted on the plan. Debtor-husband admitted material default on FCBO's claim and Debtors responded to their default by filing Chapter 7 cases. The Bankruptcy Code does not provide conclusive guidance to this Court on the circumstances, if any, when a substantially consummated Chapter 11 case should be dismissed, assuming cause has been established. Section 1141 sets forth the effects of confirmation.
Confirmation binds the debtor and any creditor.
It revests all the property of the estate in the debtor. 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.