Chapter 11 permits the debtor to operate its business by means of a plan of reorganization, which should meet certain statutory criteria. By legislating 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 persons to have knowledge and details of the operation 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 much more than it would be if its assets were sold. Chapter 12 is a U.S. bankruptcy proceeding meant for family farms or fisheries which gives the farm or fishery owner the opportunity to reorganize his or her finances and debts while still keeping the farm or fishery. The farm or fishery owner will co-ordinate with the bankruptcy trustee and creditors to determine a payment program that will satisfy his or her owner obligations. This Chapter 12 proceeding in Madison County, Georgia is available for individually run family farms and fisheries and also 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 such businesses. Before Chapter 12, farmers had to either file for protection under Chapter 11, which can be very expensive and is mainly for large corporations, or Chapter 13, which is mainly for those with relatively small outstanding debts (generally not the case for farms and fisheries). Farm debtors considering bankruptcy should contact a Madison County, Georgia farm bankruptcy attorney to know about the options.
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