A Chapter 11 bankruptcy, while generally used by corporations and businesses, may be available to you as an individual as well. In Georgia, and throughout the United States, Chapter 11 bankruptcy gives you, as the debtor the opportunity to restructure your business so you can improve your financial situation.
Additionally, a Georgia Chapter 11 bankruptcy can help you to reorganize your business and/or your personal debts and assets. How long the Georgia Chapter 11 bankruptcy could take depends on your individual situation, such as 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 Chapter 11 bankruptcy in Georgia 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 and their 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 Georgia 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 actions of fraud, dishonesty, or incompetence, a trustee may be appointed to assist you in running your business during the Georgia Chapter 11 bankruptcy process.
Chapter 11 bankruptcy needs to be viewed as more of a corporate business solution, however, as an individual, you may be carrying a lot of debt and not qualify 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 Georgia Chapter 11 bankruptcy, 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 your plan is accepted by the Georgia bankruptcy court, then your Chapter 11 bankruptcy case moves further along. However, if the court doesn’t find your reorganization plan acceptable, or you don’t 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 Georgia Chapter 11 bankruptcy, normally there is an extensive amount of documentation and planning as well as many rules and regulations that must be followed. Additionally, many of the documents required can be extremely technical.
If you live in Georgia, there are many expectations that must be met in order for your bankruptcy claim to be accepted 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 so that the courts are given all the necessary documents and fulfill the basic 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 are well prepared and are thinking in the long term to ensure that any reorganization plan that you provide to the court provides your business with greater stability once your business emerges from the bankruptcy proceedings.