Athens, GA Chapter 11 and 13
A debtor under Chapter 11 in Athens, GA can enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured so as to permit the debtor to continue the business operation. In general any partnership, corporation or limited liability entity except a governmental unit may be a debtor in a Chapter 11 proceeding. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the filing of the bankruptcy case. Under a typical reorganization agreement, the debtor attempts to restructure the debts. Such a plan will generally include the repayment of loans secured by real estate to be paid over an extended time. Intermediate term loans will be proposed to be paid over the remaining useful life of the security, which is typically five to ten years.
Chapter 13 bankruptcy proceeding in Athens, GA permits the individual debtor to pay down his debts, either whole or a part of it, using a payment plan under the supervision of the court. Debtors filing under this chapter can retain their assets with them while they stick to the plan or after they have cleared the required portion of debt. This chapter involves the rehabilitation of the debtor to allow him or her to use future earnings to pay off creditors.
A chapter 13 bankruptcy is also referred to as a wage earner’s plan. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 is especially for individuals with regular income who want to pay their debts but cannot to do so in a timely method. The purpose of this chapter is to allow financially distressed individual debtors to propose and carry out a repayment plan under which creditors are paid over an extended period of time usually three to five years. The creditors are forbidden from starting or continuing collection efforts during this time.
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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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