Richmond County, Georgia farm bankruptcy attorney

Chapter 11 allows the debtor to operate its business by means of a plan of reorganization, which should meet certain legal criteria. By legislating chapter 11, the Congress provided the debtor an opportunity to restructure its finances so that it may continue to operate, provide its employees with jobs, pay its creditors, and produce a return for its stockholders. Since chapter 11 deals with an ongoing business, the most likely persons who have knowledge and details of the business will be the present managers who generally continue operations during the chapter 11 proceeding. A major rationale of business reorganizations is that the value of an ongoing is much more than it would be if its assets were sold. Chapter 12 is a U.S. bankruptcy proceeding intended for family farms or fisheries that gives the farm or fishery owner the ability to reorganize his or her finances and debts while at the same time retaining the farm or fishery. The farm or fishery owner must co-ordinate with the bankruptcy trustee and creditors to fix a payment program that will satisfy his or her owner obligations. The Chapter 12 proceeding in Richmond County, Georgia is available for individually run family farms and fisheries and even those owned by a corporation or partnership. Chapter 12 was enacted in 1986 epecially for farms and fisheries to make the bankruptcy process easier for such businesses. Before Chapter 12, farmers would have to either file for protection under Chapter 11, which was very expensive and is mainly for large corporations, or Chapter 13, which is essentially for those with relatively small outstanding debts (generally not the case for farms and fisheries). Farm debtors looking to file for bankruptcy should consult a Richmond County, Georgia farm bankruptcy attorney to know about the options.

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