Columbia County, GA Chapter 11 and 13

Columbia County, GA Chapter 11 and 13

Chapter 11 bankruptcy in Columbia County, GA allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured to permit the debtor to continue the business operation. Basically 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 will restructure his 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 are generally proposed to be paid over the remaining useful life of the security, which is generally five to ten years.

Chapter 13 bankruptcy filing in Columbia County, GA allows the individual debtor to pay down his debts, either the entire amount or a part of it, using a payment plan under the supervision of the court. Debtors filing under this chapter can keep their assets with them while they stick to the plan or after they have paid off the required portion of debt. This chapter involves the rehabilitation of the debtor to let the debtor to use future earnings to pay off debts.

A chapter 13 bankruptcy is also known as a wage earner's plan. Under this chapter, debtors set up a repayment plan to make installments to creditors over three to five years. Chapter 13 is designed for individuals with regular income who want to pay their debts but are unable to do so in a timely way. The purpose of Chapter 13 is to allow financially distressed individual debtors to design and work out a repayment plan under which the debts are paid off over an extended period of time generally three to five years. During this time the law forbids creditors from starting or continuing collection efforts.

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