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1.7 Bankruptcy timeline
Publication date: 31 Oct 2022
us Bankruptcy & liquidation guide
Although every bankruptcy case will have its own unique timeline, some key dates are set by statute and are reasonably predictable. The timeline in Figure BLG 1-3 provides some general guidance as to how a common reorganization case under Chapter 11 might move through the process. Prepackaged and prearranged bankruptcies would operate on a more compressed timeline given the anticipated approval by the creditors.
Figure BLG 1-3
Timeline for a common reorganization under Chapter 11
Timeline for a common reorganization under Chapter 11
Prior to petition
| A company should engage professional advisors to assist with the various filing and other legal requirements that will need to be met throughout the bankruptcy process if it determines that a bankruptcy filing is its best course of action.
Certain payments and transfers made in the period prior to the petition date may be considered preferential transfers which would be subject to clawback provisions. See BLG 1.12 for additional discussion around preferential transfers.
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Petition date
| The date the petition for bankruptcy is filed with the Court.
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Within 45 days after petition date
| During this time, in most cases, the initial meeting of creditors will take place. This is known as a “341 meeting,” named after the applicable section of the Bankruptcy Code.
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Bar date
| The date set by the Court by which all creditors that have claims against the debtor have to file information to support the validity of their claims. If the debtor has included the claims in its initial schedules as a valid obligation, the creditors need not file additional information unless the creditor believes the debtor's information is inaccurate. Multiple bar dates may be assigned for different classes of claims.
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120 days after petition date
| Unless extended by the Court, the debtor's plan of reorganization and disclosure statement must be filed by this date.
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180 days after petition date
| If the debtor's plan has not been confirmed by this date (after considering any extensions for filing the plan of reorganization), its creditors, trustees, or other parties in interest can file competing plans.
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Solicitation and voting
| The debtor’s plan of reorganization is distributed to creditors and others, and each class of creditors votes to accept or reject the plan.
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Confirmation date
| The date the Court approves the plan of reorganization.
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Emergence date
| The date, on or after the confirmation date, when the reorganization plan becomes effective and all material conditions for emergence have been satisfied. The emergence date is also referred to as the effective date.
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PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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