Athens, Georgia Chapter 11

Athens, Georgia Chapter 11

Federal bankruptcy rules govern how corporations go out of business or recover from crippling financial crisis. A bankrupt company might use Chapter 11 of the Federal Bankruptcy Code to reorganize its activities and try to become profitable again. Management continues to operate the daily business operations, but all important business decisions should be approved by a bankruptcy court.

If the debtor owns a business or corporation n Athens, Georgia Chapter 11 is a reorganization proceeding to consider. There are certain requirements the debtor have to meet. Some individual debtors whose debts are more than the limits of Chapter 13 can file Chapter 11. In Chapter 11, the debtor generally remains in possession of assets and continues to operate any business, under the supervision 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 court will confirm the plan and it becomes binding on you and your creditors. Plans may call for repayment out of future income or sales of some or all of the assets.

In chapter 11 proceedings in Athens, Georgia the United States trustee, a federal employee, will not function as a case trustee, who is usually a private individual. The United States trustee is responsible for monitoring 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 property of the estate, operation of the debtor's business, and, if necessary, the submission of a plan of reorganization. Section 1106 of the US Code mandates the trustee to file a plan "as soon as practicable" or, alternatively, to file a report demonstrating why a plan will not be submitted or to recommend that the proceeding be converted to another chapter or dismissed.

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