Athens-Clarke County, Georgia Chapter 11

Athens-Clarke County, Georgia Chapter 11

Federal bankruptcy regulations govern how corporations go out of business or recover from deep debt. A bankrupt corporation can file under Chapter 11 of the Federal Bankruptcy Code to reorganize its activities and attempt to become profitable again. The company continues to run the day-to-day business activities, but all major business decisions have to be approved by a bankruptcy court.

If the debtor owns a business or corporation n Athens-Clarke County, Georgia Chapter 11 is a reorganization proceeding that should be considered. There are special requirements you should meet. Some individuals whose debts are larger than the limits of Chapter 13 can file Chapter 11. In Chapter 11, the debtor usually remains in possession of assets and continues to operate any business, subject to the oversight of the court and the creditors committee. You propose a plan of reorganization to the creditors, who vote on it. If the majority accept it, the plan is confirmed by the court and it becomes binding on you and your creditors. Plans may provide for repayment out of future income or sales of some or all of the assets.

In chapter 11 cases in Athens-Clarke County, Georgia the United States trustee, a federal employee, will not function as a case trustee, who is usually a private individual. The US trustee is responsible for observing all chapter 11 proceedings and has mandate to appear and be heard on any issue in any case, but may not file a plan. The case trustee, however, is responsible for management of the assets of the estate, operation of the debtor's business, and, if necessary, the filing of a plan of reorganization. Section 1106 of the United States Code authorizes the trustee to submit a plan "as soon as practicable" or, alternatively, to submit a report demonstrating the reasons a plan will not be submitted or to recommend that the case be converted to another chapter or dismissed.

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