Chapter 11 permits the debtor to operate its business through a plan of reorganization, which must meet certain legal criteria. By legislating chapter 11, the Congress provided the debtor an opportunity to restructure its finances so that it can continue to operate, provide employment, pay its creditors, and provide a return for its stockholders. Since chapter 11 envisions an ongoing business, the most likely individuals to have knowledge and details of the operation are the present managers who often continue operations during the chapter 11 case. A major rationale of business reorganizations is that the value of a business as an ongoing concern is much more than it would be if its assets were liquidated. Chapter 12 is a U.S. bankruptcy proceeding meant for family farms or fisheries that provides the farm or fishery owner the ability to reorganize his or her finances and debts while still retaining the farm or fishery. The farm or fishery owner will co-ordinate with a bankruptcy trustee and creditors to fix a payment program that will satisfy his or her owner obligations. A Chapter 12 proceeding in Athens-Clarke County, Georgia can be availed by individually run family farms and fisheries and even those owned by a corporation or partnership. Chapter 12 was enacted in 1986 epecially for farms and fisheries to make the bankruptcy process easier for such businesses. Before Chapter 12, farmers had to either file for protection under Chapter 11, which was very costly and is mainly for large companies, or Chapter 13, which is basically for those with relatively small outstanding debts (often not the case for farms and fisheries). Farm debtors looking to file for bankruptcy must consult a Athens-Clarke County, Georgia farm bankruptcy attorney to know about the options.
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