Augusta, GA chapter 7 business bankruptcy attorney

Augusta, GA chapter 7 business bankruptcy attorney

A Chapter 7 proceeding begins with the debtor filing a petition with the bankruptcy court. In addition to the petition, the debtor is also required to file with the court several schedules of assets and liabilities, details of current income and expenditures, a statement of financial affairs, and details of executory contracts and unexpired leases. The schedules and statements must contain the following information:
A list of all creditors and the amount and nature of their claims;
The source, amount, and frequency of the debtor's income;
A list of all of the debtor's property; and
A detailed list of the debtor's monthly living expenses (food, clothing, shelter, utilities, taxes, transportation, medicine, etc.).
Businesses intending to file Chapter 7 should seek the help of a seasoned Augusta, GA chapter 7 business bankruptcy attorney because the chapter 7 business bankruptcy process is complex.

In Chapter 7, the company ceases all activities and exits the business completely. A trustee is appointed to sell the company's assets and the amount is used to clear the debt, which may include debts to creditors and investors.
The first to be paid are the investors who take the least risk. Secured creditors take less risk because the credit that they give is typically backed by collateral, such as a mortgage or other assets of the business. They realize they will be paid first if the business files for bankruptcy protection.
Bondholders have larger chances of getting back their investments than stockholders, because bonds are the debt of the business and the business has accepted to pay bondholders interest and to pay back their principal. Stockholders own the company, and take greater risk. They could make more money if the company does well, but they can lose money if the business does badly. The owners are last in line to be repaid if the business closes. Bankruptcy regulations decide the order of payment.

---------------------We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.