Chatham County, GA Chapter 11

Federal bankruptcy laws determine how corporations go out of business or recover from crippling financial crisis. A bankrupt corporation may file under Chapter 11 of the US Bankruptcy Code to reorganize its business and attempt to become profitable again. The company continues to operate the routine business activities, however all significant business decisions must be approved by a bankruptcy court.

If the debtor owns a business or corporation n Chatham County, GA Chapter 11 is a reorganization proceeding to consider. There are special requirements the debtor should meet. Some individuals whose debts are more than the limits of Chapter 13 may file Chapter 11. In Chapter 11, the debtor usually continues in possession of assets and continues to operate any business, subject to the oversight of the court and the creditors committee. You propose a plan of reorganization to the creditors, who vote on it. If accepted by the majority, the court will confirm the plan and it becomes binding on you and your creditors. Plans can call for repayment from future income or sales of some or all of the assets.

In chapter 11 cases in Chatham County, GA the United States trustee, a federal employee, can not function as a case trustee, who is usually a private individual. The US trustee is responsible for observing all chapter 11 cases and has authority to appear and be heard on any issue in any case, but may not file a plan. The case trustee, however, is responsible for management of the property of the estate, management of the debtor’s business, and, if necessary, the filing of a plan of reorganization. Section 1106 of the Federal Code mandates the trustee to submit a plan “as soon as practicable” or, alternatively, to file a report detailing the reasons a plan will not be submitted or to recommend that the proceeding be converted to another chapter or dismissed.

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