Athens-Clarke County, Georgia Chapter 11 and 13

Athens-Clarke County, Georgia Chapter 11 and 13

Chapter 11 bankruptcy in Athens-Clarke County, Georgia allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured so as to allow the debtor to continue his business operation. In general any partnership, corporation or limited liability entity except a governmental unit can be a debtor in a Chapter 11 proceeding. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the filing of the bankruptcy case. Under a typical reorganization plan, the debtor attempts to restructure the debts. Such a plan will generally provide for the repayment of loans secured by real estate to be paid over an extended time. Intermediate term loans are generally proposed to be paid over the remaining useful life of the security, which is typically five to ten years.

Chapter 13 bankruptcy proceeding in Athens-Clarke County, Georgia allows the individual debtor to pay down his debts, either the entire amount or a part of it, under a payment plan under the supervision of the court. Those who file under this chapter can keep their possessions with them while they follow the plan or after they have cleared the required portion of debt. This chapter involves the rehabilitation of the debtor to let the debtor to use future earnings to pay off debts.

A chapter 13 bankruptcy is also referred to as a wage earner's plan. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 is designed for individuals with regular income who want to clear their debts but are unable to do so in a timely manner. The purpose of this chapter is to enable financially distressed individual debtors to propose and carry out a repayment plan under which creditors are paid over an extended period of time generally three to five years. The creditors are forbidden from starting or continuing collection efforts during this time.

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