Chapter 11 allows the debtor to operate its business by means of a plan of reorganization, that should meet certain statutory criteria. By creating chapter 11, the Congress provided the debtor an opportunity to restructure its finances so that it may continue to operate, provide its employees with jobs, pay its creditors, and produce a return for its stockholders. As chapter 11 deals with an ongoing business, the most likely individuals to have knowledge and details of the business are the present managers who often continue operations during the chapter 11 proceeding. The main rationale of business reorganizations is that the value of an ongoing is greater than it would be if its assets were liquidated. Chapter 12 is a U.S. bankruptcy proceeding intended for family farms or fisheries which gives the farm or fishery owner the ability to reorganize his or her finances and debts while still keeping the farm or fishery. The farm or fishery owner should co-ordinate with a bankruptcy trustee and creditors to formulate a payment program that will meet his or her owner obligations. This Chapter 12 proceeding in Harris County, GA is available for individually run family farms and fisheries as well as those owned by a corporation or partnership. Chapter 12 was created in 1986 epecially for farms and fisheries to make the bankruptcy process easier for these types of businesses. Before Chapter 12, farmers would have to either file for protection under Chapter 11, which can be very expensive and is mainly for large companies, or Chapter 13, which is essentially for those with relatively small outstanding debts (typically not the case for farms and fisheries). Farm debtors considering bankruptcy must consult a Harris County, GA farm bankruptcy attorney to know about the options.
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