What is a chapter 11 disclosure statement?
• the debtor’s assets, • the debtor’s liabilities; • the history of events that led to the debtor needing chapter 11 relief; and • the treatment of claims under the plan. It also contains details about what claims are included in each class of creditors and how the debtor intends to deal with the claims in each class. A disclosure statement will also typically contain: • a liquidation analysis, informing creditors of how much money might be available to general unsecured creditors if the debtor had filed chapter 7 and the trustee had liquidated all the assets and paid amounts due to professionals, taxing bodies, and secured creditors first; • a projection of the debtor’s income and expenses over the next three to five years; • a projection of the payments the debtor can afford to make to creditors in the various classes from disposable income over the next three to five years; and • a copy of the debtor’s most recent operating report, showing monthly income and expenses.
