Evans, GA chapter 7 business bankruptcy attorney

A Chapter 7 case begins with the debtor filing a petition with the bankruptcy court. Along with 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 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 assistance of a seasoned Evans, GA chapter 7 business bankruptcy attorney as the chapter 7 business bankruptcy process is complex.

Under Chapter 7, the company stops its activities and exits the business completely. A trustee is appointed to sell the company's assets and the amount is used to pay off the debt, which can include debts to creditors and investors.
The investors who take the least risk are paid first. Secured creditors take less risk as the credit that they extend is generally supported by collateral, such as a mortgage or other assets of the business. They know they will get paid first if the company declares bankruptcy.
Bondholders have greater potential of recovering their investments than stockholders, because bonds represent the debt of the business and the company has agreed to pay bondholders interest and to pay back their principal. Stockholders own the business, and take more risk. They could make larger amounts of money when the company does well, but they may lose money if the business does poorly. The owners are last in line to be repaid if the company closes. 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.