Disclosure Statement

dis-KLOH-jur state-ment
In bankruptcy proceedings, a disclosure statement is a document that provides information about the debtor's reorganization plan. The disclosure statement is intended to inform creditors and other interested parties about the plan and allow them to vote on whether to approve it.
The debtor filed a revised disclosure statement after addressing concerns raised by creditors.
In re Acme Corporation (2019), the court denied approval of the debtor's reorganization plan because the disclosure statement was found to be misleading.
← Back to BrowseNext Term →

Frequently Asked Questions

What information must be included in a disclosure statement?

The disclosure statement must include information about the debtor's financial condition, the proposed plan of reorganization, and the potential risks and benefits of the plan for creditors.

Who votes on the reorganization plan?

Creditors and other parties with an interest in the bankruptcy estate vote on the reorganization plan.

How is a reorganization plan approved?

The plan must be approved by a majority of creditors whose claims are affected by the plan.

See all that Filevine can do with a customized demonstration from our team

Schedule a Demo