Savannah Georgia Chapter 11 and 13

Savannah Georgia Chapter 11 and 13

A debtor under Chapter 11 in Savannah 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 to allow the debtor to continue the operation of the business. In general any partnership, corporation or limited liability entity except a governmental unit may be a debtor in a Chapter 11 proceeding. Under Chapter 11, only the debtor can submit a plan of reorganization within 120 days of the initiation of the bankruptcy case. Under a typical reorganization agreement, the debtor attempts to restructure the debts. Such a plan will generally include the repayment of loans secured by real property to be paid over an extended period of time. Intermediate term loans are generally proposed to be paid over the remaining useful life of the security, which is typically five to ten years.

Chapter 13 bankruptcy filing in Savannah Georgia permits the individual debtor to pay down his debts, either whole or a part of it, with the help of a payment plan under the supervision of the court. Debtors filing under this chapter can keep their possessions with them while they stick to the plan or after they have cleared the required portion of debt. It involves the rehabilitation of the debtor to let him or her to use future earnings to pay off creditors.

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 manner. The purpose of Chapter 13 is to enable financially distressed individual debtors to design and work out a repayment plan under which the debts are paid off over an extended period of time generally three to five years. The creditors are forbidden from starting or continuing collection efforts during this time.

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