Liquidating assets before bankruptcy
1006(b); Bankruptcy Court Miscellaneous Fee Schedule, Item 8. For cause shown, the court may extend the time of any installment, provided that the last installment is paid not later than 180 days after the filing of the petition. Creditors whose claims are "impaired," i.e., those whose contractual rights are to be modified or who will be paid less than the full value of their claims under the plan, vote on the plan by ballot. These duties, set forth in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U. trustee or bankruptcy administrator (discussed below), such as monthly operating reports. Section 1107 of the Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a chapter 11 trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee.
Should a debtor in possession fail to comply with the reporting requirements of the U. trustee or orders of the bankruptcy court, or fail to take the appropriate steps to bring the case to confirmation, the U. trustee may file a motion with the court to have the debtor's chapter 11 case converted to another chapter of the Bankruptcy Code or to have the case dismissed.
If the debtor is an individual (or husband and wife), there are additional document filing requirements.