Filing Chapter 11 Bankruptcy
Chapter 11 Bankruptcy can be filed by a person or company. This bankruptcy option allows you to reduce or eliminate unsecured debts or undesired debts, and restructure essential debts that are needed for continued business operation. Unlike chapter 7 or 13, Chapter 11 Bankruptcy does provide the Automatic Stay protection for a filer of this chapter bankruptcy.
A Chapter 11 bankruptcy is commonly referred to as “business reorganization” and is usually limited to business bankruptcy. It is uncommon to use a Chapter 11 filing for an individual. Businesses usually enjoy the fact that a Chapter 11 bankruptcy allows the business to continue operating while it retires the debts. Chapter 11 Bankruptcy is an ideal solution for a business facing overwhelming financial problems.
A Chapter 11 Bankruptcy filing does not require the filer to satisfy any particular qualifying requirements regarding the amount of debt or type of business. A business within dire financial challenges can continue to operate without risks of creditor lawsuits, liens or deadly turnover orders. The time allowed by the Chapter 11 process gives the filer a chance to reorganize its financial situation. The court typically grants a period of around 120 days to present a debt reorganization plan.
A Chapter 11 bankruptcy filing can be a daunting and time-consuming ordeal. Because the business must relinquish control to the bankruptcy court and creditors, the process can be aggravating. In order to protect your interests and mitigate the odds of being harassed by creditors, you should engage the services of a highly qualified Chapter 11 bankruptcy lawyer.
We encourage you to call us before the storm begins. We can give you the information you need to prepare for filing Chapter 11 bankruptcy in Georgia.
