A Georgia Chapter 11 bankruptcy can help you to reorganize your business and/or your personal debts and assets. How long the Chapter 11 bankruptcy takes depends on your individual situation. Consequently, it matters how complex your business is and how much debt you have.
In Georgia, a Chapter 11 bankruptcy is the most complex and also the most expensive. If you are considering a Chapter 11 bankruptcy for your business or corporation, you may want to take some time to analyze whether it’s the best move for you and consult with Georgia bankruptcy attorney Tyler Moffitt.
How Does A Georgia Chapter 11 Bankruptcy Affect My Commercial Business?
It’s important to note that just because your business files for this type of bankruptcy in Georgia, it doesn’t mean you’re out of business. Companies such as General Motors, K-Mart, United Airlines, and other well-known businesses have all used Chapter 11 bankruptcies to reorganize and have survived.
For example, when K-Mart filed for Chapter 11 Bankruptcy, it was assumed that the company was going to die and never regain its place in the retail arena. However, as it turned out, K-Mart continued business as usual. The goal in their Chapter 11 bankruptcy was to reorganize and get stronger, not to go out of business.
Additionally, you can still keep your doors open and operate your business while going through the Chapter 11 bankruptcy process. If you chose to do that, you will be considered to be a debtor in possession.
However, it’s important to note that if there is any indication or action of fraud, dishonesty, or incompetence, the court may appoint a trustee to assist you to run your business during the Chapter 11 bankruptcy process in Georgia.
Chapter 11 bankruptcy needs to be viewed as more of a corporate business solution. However, as an individual, you may carry a lot of debt. This may disqualify you for a Chapter 7 or Chapter 13 bankruptcy. Therefore, a Chapter 11 bankruptcy may be another viable option for you.
What About the Plan for Reorganization During My Georgia Chapter 11 Bankruptcy?
During your Chapter 11 bankruptcy in Georgia, your business or you as an individual have the right to propose your own reorganization plan. You may include such things as downsizing, liquidating assets, laying off some employees, and/or renegotiating debts.
If the Georgia bankruptcy court accepts your plan, then your Chapter 11 bankruptcy case moves further along. However, if the court doesn’t find your reorganization plan is acceptable, or that you did not submit one, your creditors then have the opportunity to suggest a reorganization plan.
Do I Need A Georgia Bankruptcy Attorney?
Bankruptcy is quite complex, especially a Chapter 11 bankruptcy. In a Chapter 11 bankruptcy, normally there is an extensive amount of documentation and planning. In addition, you need to follow many rules and regulations. Additionally, many of the documents required can be extremely technical.
If you live in Georgia, your bankruptcy claim must meet many expectations in order for the court’s acceptance. These expectations are irrespective of whether or not you choose to hire a Georgia bankruptcy attorney. It’s always in your best interest to consult with a Georgia bankruptcy attorney. An attorney can provide the courts all documents and meet the requirements for your bankruptcy to run smoothly.
If you are considering filing for a Georgia bankruptcy, you should contact Tyler Moffitt, a skilled and experienced Georgia bankruptcy lawyer. Our legal team specializes in bankruptcy cases and is available to assist you with yours.
In a Georgia Chapter 11 bankruptcy, it’s vital that you prepare to think in the long term. Any reorganization plan you submit to the court should show that your business is more stable after your business’ bankruptcy.