Madison County, GA Chapter 11
Federal bankruptcy rules govern how corporations go out of business or recover from crippling debt. A bankrupt corporation may file under Chapter 11 of the Federal Bankruptcy Code to reorganize its business and attempt to become profitable again. Management continues to operate the daily business activities, but all important business decisions have to be approved by a bankruptcy court.
If the debtor owns a business or corporation n Madison County, GA 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. The debtor proposes 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 the debtor and the creditors. Plans can call for repayment from future income or sales of some or all of the assets.
In chapter 11 cases in Madison County, GA the United States trustee, a federal employee, can not function as a case trustee, who is usually a private individual. The United States trustee is responsible for observing all chapter 11 proceedings and has authority to appear and be heard on any issue in any case, but may not submit a plan. The case trustee, however, is responsible for management of the property of the estate, management 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 proceeding be converted to another chapter or dismissed.
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