Under Chapter 11 rules, what may the municipality request if monthly plan payments or subsequent taxes are not paid?

Under Chapter 11 rules, what may the municipality request if monthly plan payments or subsequent taxes are not paid?

• A. Tax lien removal
• B. Order of Relief to enforce debt
• C. Dismissal of case
• D. Reassessment of property values

Answer: (B)

In Chapter 11, when a debtor fails to make plan payments or pay post-petition taxes, the court can provide a way for creditors to move forward with enforcement of the debt. The municipality may request an Order of Relief to enforce the debt, which grants the creditor the authority to proceed with collection actions that may have been stayed during the bankruptcy. This is the mechanism that directly enables the municipality to recover what is owed, even while a Chapter 11 case is ongoing. The other options don’t address enforcement in this context: removing a tax lien would undermine the municipality’s remedy, dismissal ends the case rather than enabling enforcement, and reassessment of property values is unrelated to the debt collection process in Chapter 11.

In Chapter 11, when a debtor fails to make plan payments or pay post-petition taxes, the court can provide a way for creditors to move forward with enforcement of the debt. The municipality may request an Order of Relief to enforce the debt, which grants the creditor the authority to proceed with collection actions that may have been stayed during the bankruptcy. This is the mechanism that directly enables the municipality to recover what is owed, even while a Chapter 11 case is ongoing. The other options don’t address enforcement in this context: removing a tax lien would undermine the municipality’s remedy, dismissal ends the case rather than enabling enforcement, and reassessment of property values is unrelated to the debt collection process in Chapter 11.