Augusta, GA Chapter 11 and 13

Augusta, GA Chapter 11 and 13

A debtor under Chapter 11 in Augusta, GA 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 his 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 filing of the bankruptcy proceeding. Under a typical reorganization plan, the debtor attempts to restructure his debts. Such a plan will generally provide for the repayment of loans secured by real property 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 typically five to ten years.

Chapter 13 bankruptcy filing in Augusta, GA permits the individual debtor to pay down his debts, either the entire amount or a part of it, using a payment plan under the supervision of the court. Debtors filing under this chapter can keep their assets 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 let him or her 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 cannot to do so in a timely way. The purpose of Chapter 13 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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