7 Collier on Bankruptcy P 1122.01

Summary

Section 1122 of the Bankruptcy Code governs the classification of claims or interests under a chapter 11 plan. Classification involves the grouping of particular claims or interests into a designated “class” under a plan, and it is important for at least three reasons. First, classification is a prerequisite to plan confirmation. Second, the classification of a claim or interest determines the treatment of that claim or interest under the plan. Finally, in most instances, the plan proponent needs at least one impaired class of claims voting to accept the proposed plan to pursue confirmation of the plan under section 1129.1