Chapter 11 Bankruptcy in Savannah Georgia

Federal bankruptcy rules determine how companies in Savannah Georgia go out of business or recover from crippling debt. A bankrupt company might use Chapter 11 of the US Bankruptcy Code to reorganize its business and try to become profitable again. Management continues to operate the daily business operations, however all important business decisions should be approved by a bankruptcy court.

A debtor under Chapter 11 can enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured to allow the debtor to continue his business operation. Basically any partnership, corporation or limited liability entity except a governmental unit can be a debtor in a Chapter 11 case in Savannah Georgia. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the initiation of the bankruptcy proceeding. Under a typical reorganization agreement, the debtor will restructure his debts. Such a plan will generally include the repayment of loans secured by real property to be paid over an extended time. Intermediate term loans will be proposed to be paid over the remaining useful life of the collateral, which is generally five to ten years.

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