Augusta, GA Chapter 11

Augusta, GA Chapter 11

Federal bankruptcy laws determine how companies go out of business or recover from deep debt. A bankrupt company might file under Chapter 11 of the US Bankruptcy Code to reorganize its activities and try to become profitable again. Management continues to operate the daily business activities, however all important business decisions should be approved by a bankruptcy court.

If you own a business or corporation n Augusta, GA Chapter 11 is a reorganization proceeding that should be considered. There are special requirements the debtor must meet. Some individual debtors whose debts are larger than the limits of Chapter 13 can file Chapter 11. In Chapter 11, the debtor usually remains in possession of assets and continues to operate any business, subject to the oversight of the court and the creditors committee. You propose a plan of reorganization to the creditors, who vote on it. If accepted by the majority, the court will confirm the plan and it becomes binding on you and your creditors. Plans can provide for repayment out of future income or sales of some or all of the assets.

In chapter 11 proceedings in Augusta, GA the United States trustee, a federal employee, can not function as a case trustee, who is often a private individual. The US trustee is responsible for observing all chapter 11 proceedings and has mandate to appear and be heard on any issue in any case, but can not submit a plan. The case trustee, on the other hand, is responsible for management of the assets of the estate, management of the debtor's business, and, if necessary, the submission of a plan of reorganization. Section 1106 of the Federal Code mandates the trustee to file a plan "as soon as practicable" or, alternatively, to submit a report demonstrating why a plan will not be submitted or to recommend that the proceeding be converted to another chapter or dismissed.

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