Also known as plan. A comprehensive document prepared by a debtor or another party in interest detailing how the debtor will continue to operate or liquidate, and how it plans to pay the claims of its creditors over a fixed period of time. The plan must categorize claims into various classes, describe the treatment of each class under the plan and specify how the debtor will implement its terms. The plan, along with a court-approved disclosure statement, is distributed to creditors for voting. The bankruptcy court and creditors must approve the plan before it can become effective and be executed.

For more information on plans of reorganization, see Practice Notes, Drafting Chapter 11 Plans: Overview and Chapter 11 Plan Process: Overview and Timeline of the Chapter 11 Plan Process.