Chapter 11 Bankruptcy in Columbia County, GA

Chapter 11 Bankruptcy in Columbia County, GA

Federal bankruptcy laws govern how companies in Columbia County, GA go out of business or recover from deep debt. A bankrupt corporation may file under Chapter 11 of the Federal Bankruptcy Code to reorganize its business and try to become profitable again. Management continues to run the daily business operations, however all major business decisions should be approved by a bankruptcy court.

A debtor under Chapter 11 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 allow the debtor to continue the operation of the business. In general any partnership, corporation or limited liability entity except a governmental unit can be a debtor in a Chapter 11 proceeding in Columbia County, GA. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the initiation of the bankruptcy proceeding. Under a typical reorganization plan, the debtor will restructure the debts. Such a plan will generally provide for the repayment of loans secured by real property to be paid over an extended time. Intermediate term loans will be proposed to be paid over the remaining useful life of the collateral, which is generally five to ten years.

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