Savannah GA Small Business Debtor Bankruptcy lawyers

Small Business Debtor in Chatham County GA

Few kinds of debtors are defined in the bankruptcy Code and have special provisions that apply only to these debtors. One such debtor is a small business, defined as a person engaged in commercial or business activities not including a person that primarily owns or operates real property that has aggregate non-contingent liquidated secured and unsecured debts less than $2,000,000. If a debtor qualifies and elects to be considered a small business, the case is placed on a “fast track” and treated differently than a usual chapter 11 case under the US Bankruptcy Code. For example, the appointment of a creditors committee and a separate hearing to approve the disclosure statement are not necessary. On request of a party in interest and for cause, the court candirect that a creditors committee not be appointed. The court can conditionally approve a statement of disclosure, subject to final approval upon notice and a hearing. Solicitation of votes for approval or rejection of the plan may go ahead based on the conditional approval of the disclosure statement. Thereafter, the disclosure statement hearing might be clubbed with the confirmation hearing. Additionally the debtor has a shorter time period of 100 days during which only the debtor can submit a plan. When the 100-day period is over, any party in interest can file a plan; however, all plans must be filed within 160 days from the date of the order for relief.

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