A document proposing the terms for reorganizing or liquidating the debtor’s business.
The plan is usually filed by the debtor but is sometimes filed by creditors or other parties in interest. If confirmed, the plan governs the debtor’s rights and obligations when it emerges from bankruptcy. The plan is treated as a contract between the debtor and its creditors governing their post-confirmation relationships. A plan will sometimes not envision a debtor’s reorganization or emergence from bankruptcy at all but may instead provide for liquidation of the debtor’s assets.