Columbia County, Georgia chapter 7 business bankruptcy attorney

A Chapter 7 case begins when the debtor filing a petition with the bankruptcy court. In addition to the petition, the debtor must also 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;
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 must seek the assistance of a seasoned Columbia County, Georgia chapter 7 business bankruptcy attorney since the chapter 7 business bankruptcy process is complex.

Under Chapter 7, the company stops its activities and goes completely out of business. A trustee is appointed to sell 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 generally backed by collateral, like a mortgage or other assets of the company. They realize they will be paid first if the business declares bankruptcy.
Bondholders have greater potential for recovering their investments unlike stockholders, because bonds represent the debt of the business and the business has accepted to pay bondholders interest and to return their principal. Stockholders own the company, and take more risk. They could make larger amounts of money when the company does well, but they can lose money if the business does poorly. The owners are the last to be repaid if the business fails. Bankruptcy rules 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.