Richmond Hill, Georgia Chapter 11 and 13

Richmond Hill, Georgia Chapter 11 and 13

A debtor under Chapter 11 in Richmond Hill, Georgia can enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured so as to permit the debtor to continue his operation of the business. Basically 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 can submit a plan of reorganization within 120 days of the initiation of the bankruptcy proceeding. Under a typical reorganization plan, 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 security, which is generally five to ten years.

Chapter 13 bankruptcy filing in Richmond Hill, Georgia permits the individual debtor to pay down his debts, either the entire amount or a part of it, with the help of a payment plan under the supervision of the court. Those who file under this chapter can retain their possessions with them while they stick to the plan or after they have paid off the required portion of debt. This chapter involves the rehabilitation of the debtor to allow him or her to use future earnings to pay off debts.

A chapter 13 bankruptcy is also referred to as a wage earner’s plan. Under this chapter, debtors set up 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 cannot 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. During this time the law forbids creditors from starting or continuing collection efforts.

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