Conseco Finance Will not release payoff info, Finally got approved and still can not get out from under "Them" abused & mistreated San Antonio Texas

Conseco, Inc. Chapter 11
About Chapter 11

Phase 1: Filing of Chapter 11 petition

Conseco, Inc. files a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code, which freezes any lawsuits and debt collection actions against the company.

As Debtor-in-Possession, Conseco, Inc. operates business as usual while it restructures as a company.

Phase 2: Development of Conseco, Inc.'s
reorganization plan

An official creditor's committee is formed to work with Conseco, Inc. on its reorganization.

Conseco, Inc. creates a long-term business plan and a Reorganization Plan, which includes repaying creditors, and submits it to the Bankruptcy Court for approval.

Phase 3: Reorganization plan approval and
emergence from Chapter 11

The Bankruptcy Court reviews the Reorganization Plan. Once the plan is approved, it becomes effective and Conseco, Inc. should emerge from Chapter 11 as a reorganized entity.

Phase 1: Filing of Chapter 11 petition
A Chapter 11 filing is a voluntary action taken by a company to protect its ongoing business from financial claims while it continues operating its business without interruption. During a Chapter 11 proceeding, the company reorganizes financially and, at times, operationally so that it can meet the financial claims of those to whom it owes money. A Chapter 11 filing immediately freezes all financial claims against the company that precede the filing, stops all lawsuits against the company, and precludes creditors from exercising control over the company's property. Chapter 11 reorganization is entirely different from other bankruptcy proceedings where the focus is on liquidating the company. Companies commonly file for Chapter 11 voluntarily because it provides a process for the company to emerge as a viable business.

Under a Chapter 11 proceeding, a company maintains its normal business operations and continues to provide employees with salaries and benefits. It is also able to do business with suppliers and customers in a routine manner so that it can continue to generate funds to support ongoing operations and to satisfy creditors.

Phase 2: Development of Conseco, Inc.'s reorganization plan

Appointment of official creditors' committee
After the company files for Chapter 11 protection, a government agency, the Office of the U.S. Trustee, appoints an Official Creditors' Committee. Normally, this Committee becomes involved in the Court-supervised process to ensure that creditors are treated fairly.

Meeting of creditors
A joint meeting of company representatives and people who believe the company owes them money (called the 341 meeting because it is required under section 341 of the U.S. Bankruptcy Code) typically occurs approximately 30-45 days after a Chapter 11 filing. A notice of the 341 meeting, along with notice of the commencement of the case, will be mailed to all creditors within the first few weeks of the filing.

Notice to creditors of bar date
Another major step in the Chapter 11 process is providing notice to anyone who believes they are owed money, that is, people who have a financial claim against the company. Notice procedures, which normally include advertising, are established. Notice is given to people with claims alerting them that their claims must be brought forward, by filing a proof of claim, by a certain date that is referred to as the bar date. Claimants are usually provided with a period of time from the date of the notice to file their proofs of claim.

Development of plan of reorganization
In a regular Chapter 11 filing, the company, as the debtor, would begin to develop a business plan and negotiate with its creditors to formulate a reorganization plan. The company has the exclusive right by law to propose such a plan of reorganization during the first 120 days of the Chapter 11 process. If the company is proceeding in good faith, the exclusive period may be, and usually is, extended by the Bankruptcy Court. But in the case of Conseco, they have already developed the plan and negotiated with their creditors, therefore their process will move along expeditiously.

Once the Court has gathered all of the claims that resulted from the bar date notice, hearings are held to determine the value of any claims that are disputed. Once the Plan of Reorganization is formulated and documented, it will be filed with the Bankruptcy Court.

Phase 3: Reorganization plan approval and emergence
from Chapter 11

Presentation of disclosure statement to bankruptcy court Along with the Plan of Reorganization, a Disclosure Statement with financial information is presented to the Court. The Disclosure Statement also explains the company's proposed plan for paying its creditors. The Bankruptcy Court must determine if the Disclosure Statement contains adequate information for the creditors to decide whether to vote to accept or reject the Plan of Reorganization. If the Disclosure Statement is approved by the Court, the company will then send it, along with the proposed Plan of Reorganization, to all creditors and interest holders in the company. Those parties can then vote on the Reorganization Plan.

Voting on the plan and confirmation
If the required number of interested parties votes in favor of the plan, the company will then seek Bankruptcy Court approval, or confirmation, of its Plan of Reorganization. If the plan is confirmed by the Court, the claims of creditors will be satisfied as provided for in the plan. At this point, the company can emerge from Chapter 11 as a reorganized company and operate its business as described in its Plan of Reorganization.

Other Informational
Web Sites:

U.S. Securities and Exchange Commission: Corporate Bankruptcy

The American Bankruptcy Institute: Bankruptcy Terms

The American Bankruptcy Institute: U.S Bankruptcy Code in full - PDF (164 pgs) 1.32 MB