Augusta, Georgia chapter 7 business bankruptcy attorney

Augusta, Georgia chapter 7 business bankruptcy attorney

A Chapter 7 proceeding begins when 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 include 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;
Details of 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, Georgia chapter 7 business bankruptcy attorney as the chapter 7 business bankruptcy process is complicated.

Under Chapter 7, the business stops all activities and goes completely out of business. A trustee is appointed to liquidate the business’s assets and the money is used to pay off the debt, which can include debts to creditors and investors.
The first to be paid are the investors who take the least risk. Secured creditors take less risk due to the fact that the credit that they extend is typically supported by collateral, such as a mortgage or other assets of the business. They realize they will be paid first if the company 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 return their principal. Stockholders own the business, and take greater risk. They can make larger amounts of money if the business does well, but they could lose money if the company does poorly. The owners are last in line to be repaid if the business fails. Bankruptcy regulations determine 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.