A Chapter 11 Plan Is Binding on Confirmation and the Debtor

question 73

True/False

A Chapter 11 plan is binding on confirmation and the debtor is discharged.

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Definitions:

Debtor

An individual or organization that owes money or services to another entity, known as the creditor.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay their outstanding debts, allowing for the liquidation or reorganization of assets to pay off creditors.

Voidable Preference

A legal term referring to a payment or asset transfer made by a debtor that can be invalidated by a bankruptcy trustee under certain conditions.

Insider

An individual with access to confidential information about a company, often an employee or executive, which can affect financial decisions or market performance.