Confirmed or Confirmation

Confirmation is the act of approving a chapter 11 plan by the Bankruptcy Court. Section 1129 of the Bankruptcy Code, in the context of a Traditional Chapter 11, requires the Bankruptcy Court to make a number of specific findings to “confirm” (approve) a plan and make it binding on all parties. They include determinations that the plan complies with all applicable law and has been proposed in good faith. See Bankruptcy Code §1129(a)(1)-(3). The Bankruptcy Court must also determine that the plan is feasible (i.e., that confirmation is not likely to be followed by liquidation). See Bankruptcy Code §1129(a)(11). Dealing with Distress for Fun & Profit— Installment #18—How to Confirm a Chapter 11 Plan explains confirmation requirements in detail. The standards for confirming Confirmation in the context of a Subchapter V Chapter 11 are set out in Bankruptcy Code §1191.