Athens, Georgia Chapter 11 and 13

Athens, Georgia Chapter 11 and 13

Chapter 11 bankruptcy in Athens, 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 to permit the debtor to continue the operation of the business. 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 can 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 his debts. Such a plan will generally provide for the repayment of loans secured by real property to be paid over an extended time. Intermediate term loans will be proposed to be paid over the remaining useful life of the security, which is generally five to ten years.

Chapter 13 bankruptcy filing in Athens, Georgia permits the individual debtor to pay down his debts, either the entire amount or a part of it, using a payment plan under the supervision of the court. Those who file under this chapter can keep their assets with them while they stick to the plan or after they have paid off the required portion of debt. This chapter involves the rehabilitation of the debtor to let him or her 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 set up a repayment plan to make installments to creditors over three to five years. Chapter 13 is especially for individuals with regular income who want to clear their debts but are unable to do so in a timely method. The purpose of this chapter is to enable financially distressed individual debtors to propose and carry out a repayment plan under which the debts are paid off over an extended period of time generally three to five years. During this time the law forbids creditors from starting or continuing collection efforts.

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