Evans, Georgia Chapter 11 and 13

Evans, Georgia Chapter 11 and 13

A debtor under Chapter 11 in Evans, Georgia can enter into an agreement with creditors under which all or a part of the business continues. The business’s debts are restructured so as to allow the debtor to continue the business operation. In general any partnership, corporation or limited liability entity except a governmental unit may be a debtor in a Chapter 11 case. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the initiation of the bankruptcy case. Under a typical reorganization plan, the debtor attempts to restructure the debts. Such a plan will generally provide for the repayment of loans secured by real estate to be paid over an extended period of time. Intermediate term loans are generally proposed to be paid over the remaining useful life of the collateral, which is typically five to ten years.

Chapter 13 bankruptcy filing in Evans, Georgia permits the individual debtor to pay down his debts, either whole or a part of it, under a payment plan under the supervision of the court. Debtors filing under this chapter can retain their assets with them while they stick to the plan or after they have cleared the required portion of debt. This chapter involves the rehabilitation of the debtor to allow 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 propose a repayment plan to make installments to creditors over three to five years. Chapter 13 is especially for individuals with regular income who want to clear their debts but are unable to do so in a timely method. The purpose of this chapter is to enable 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 usually three to five years. During this time the law forbids creditors from starting or continuing collection efforts.

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