Chapter 11 Bankruptcy in Athens, GA

Chapter 11 Bankruptcy in Athens, GA


Federal bankruptcy laws decide how companies in Athens, GA go out of business or recover from deep debt. A bankrupt company can file under Chapter 11 of the US Bankruptcy Code to reorganize its business and try to become profitable again. Management continues to run the day-to-day business activities, but all major business decisions should be approved by a bankruptcy court.

Chapter 11 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 operation of the business. In general any partnership, corporation or limited liability entity except a governmental unit may be a debtor in a Chapter 11 case in Athens, GA. Under Chapter 11, only the debtor can submit a plan of reorganization within 120 days of the initiation of the bankruptcy case. Under a typical reorganization plan, the debtor attempts to restructure the debts. Such a plan will generally include the repayment of loans secured by real estate 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.

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