Chapter 11 permits the debtor to run its business through a plan of reorganization, which should fulfill 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. As chapter 11 deals with an ongoing business, the most likely individuals to have knowledge and details of the operation will be the existing managers who generally continue operations during the chapter 11 case. A major rationale behind business reorganizations is that the value of a business as an ongoing concern is far more than it would be if its assets were liquidated. Chapter 12 is a U.S. bankruptcy chapter especially for family farms or fisheries that gives the farm or fishery owner the opportunity to reorganize his or her finances and debts while at the same time retaining the farm or fishery. The farm or fishery owner must co-ordinate with a bankruptcy trustee and creditors to determine a payment program that will satisfy his or her owner obligations. A Chapter 12 proceeding in Oconee 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 exclusively for farms and fisheries to make the bankruptcy process easier for such businesses. Prior to Chapter 12, farmers would have to either file for protection under Chapter 11, which can be very expensive and is mainly for big corporations, or Chapter 13, which is basically for those with comparatively small outstanding debts (typically not the case for farms and fisheries). Farm debtors looking to file for bankruptcy must contact a Oconee County, GA farm bankruptcy attorney to know about the options.
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