Liberty County, GA Chapter 11 and 13
Chapter 11 bankruptcy in Liberty County, GA allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The business’s debts are restructured to permit the debtor to continue the business operation. In general any partnership, corporation or limited liability entity except a governmental unit can be a debtor in a Chapter 11 case. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the initiation of the bankruptcy case. Under a typical reorganization plan, the debtor will restructure his debts. Such a plan will generally provide for the repayment of loans secured by real estate to be paid over an extended period of time. Intermediate term loans will be proposed to be paid over the remaining useful life of the security, which is generally five to ten years.
Chapter 13 bankruptcy filing in Liberty County, GA allows the individual debtor to pay down his debts, either whole or a part of it, under a payment plan under the supervision of the court. Debtors filing under this chapter can retain their properties with them while they stick to the plan or after they have cleared the required portion of debt. This chapter involves the rehabilitation of the debtor to allow the debtor to use future earnings to pay off debts.
A chapter 13 bankruptcy is also called a wage earner’s plan. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 is designed for individuals with regular income who want to pay their debts but are unable to do so in a timely way. The purpose of this chapter is to allow financially distressed individual debtors to design and work out a repayment plan under which creditors are paid over an extended period of time usually three to five years. The creditors are forbidden from starting or continuing collection efforts during this time.
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