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Chapter 11 Bankruptcy In Atlanta, Georgia

Chapter 11, typically used by commercial enterprises, is fairly similar to Chapter 13 bankruptcy. This type of bankruptcy is designed for companies that wish to continue business and repay debts at the same time. The business puts forth a plan of reorganization that must be court-approved. Management continues to run day-to-day business operations, but the bankruptcy court must approve all significant business decisions. Under Chapter 11 the debtor usually goes through a period of consolidation and emerges with a reduced debt load and a reorganized business.

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Who is Eligible Under Chapter 11 in Atlanta, Georgia
Both Atlanta, Georgia individuals and Atlanta businesses may file under Chapter 11, but it is primarily used for business debt. A business may file for Chapter 11 bankruptcy if their debts exceed the limits of Chapter 13 ($250,000 secured and $750,000 unsecured) but total less than $2,000,000. A debtor may not file under Chapter 11 or any other chapter if in the previous 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with the orders of the court or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.

What to Expect in a Atlanta, Georgia Chapter 11 Bankruptcy Case
The first step in your Chapter 11 bankruptcy is to file the petition for bankruptcy with the courts. Once the petition has been filed the U.S. Trustee will appoint one or more committees to represent the interests of creditors and stockholders in working with the company to develop a plan of reorganization to get out of debt. The plan must be accepted by the creditors, bondholders, and stockholders, and then confirmed by the court. However, even if creditors or stockholders vote to reject the plan, the court may still approve it. Once the plan is confirmed another, more detailed report must be filed with the court. Your Atlanta, Georgia bankruptcy lawyer can help you in filing your petition and accompanying paperwork and will represent you at the meetings of creditors and stockholders.These are the steps to expect to follow in creating the plan of repayment:

1. The debtor business develops a plan in conjunction with the trustee-appointed committees.
2. The business prepares a disclosure statement and reorganization plan and files it with the court.
3. The United States Securities and Exchange Commission will review the disclosure statement.
4. Creditors will vote on the plan.
5. The court will confirm the plan.6. The business will carry out the plan by reorganizing and distributing the securities or payments called for by the plan.

For more information about Chapter 11 bankruptcy, contact a Atlanta, Georgia bankruptcy lawyer.