Athens, GA Chapter 11
Federal bankruptcy rules determine how corporations go out of business or recover from deep financial crisis. A bankrupt company may file under Chapter 11 of the Federal Bankruptcy Code to reorganize its business and try to become profitable again. The company continues to operate the daily business operations, but all major business decisions should be approved by a bankruptcy court.
If you own a business or corporation n Athens, GA Chapter 11 is a reorganization proceeding to consider. There are special requirements you have to meet. Some individuals whose debts are larger than the limits of Chapter 13 may file Chapter 11. In Chapter 11, the debtor generally continues 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 court will confirm the plan and it becomes binding on you and your creditors. Plans may call for repayment out of future income or sales of some or all of the assets.
In chapter 11 proceedings in Athens, GA the United States trustee, a federal employee, can not act as a case trustee, who is usually a private individual. The US trustee is responsible for monitoring all chapter 11 proceedings and has mandate to appear and be heard on any issue in any case, but can 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 submission of a plan of reorganization. Section 1106 of the Federal Code authorizes the trustee to file a plan “as soon as practicable” or, alternatively, to submit a report detailing the reasons a plan will not be filed or to recommend that the case be converted to another chapter or dismissed.
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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy
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