Columbia County, GA Chapter 11
Federal bankruptcy regulations decide how companies go out of business or recover from crippling debt. A bankrupt corporation may file under Chapter 11 of the US Bankruptcy Code to reorganize its activities and attempt to become profitable again. Management continues to run the routine business activities, however all important business decisions should be approved by a bankruptcy court.
If you own a business or corporation n Columbia County, GA Chapter 11 is a reorganization proceeding to consider. There are special requirements the debtor have to meet. Some individuals whose debts are more than the limits of Chapter 13 may file Chapter 11. In Chapter 11, the debtor usually remains 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 accepted by the majority, the plan is confirmed by the court and it becomes binding on the debtor and the creditors. Plans can provide for repayment out of future income or sales of some or all of the assets.
In chapter 11 proceedings in Columbia County, GA the United States trustee, a federal employee, can not act as a case trustee, who is often a private individual. The United States trustee is responsible for monitoring all chapter 11 cases 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 assets of the estate, management of the debtor’s business, and, if necessary, the filing of a plan of reorganization. Section 1106 of the Federal Code mandates the trustee to submit a plan “as soon as practicable” or, alternatively, to submit a report demonstrating the reasons a plan will not be filed or to recommend that the proceeding be converted to another chapter or dismissed.
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