Chattahoochee County, GA Chapter 11 and 13

Chattahoochee County, GA Chapter 11 and 13

Chapter 11 bankruptcy in Chattahoochee County, GA allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The business’s debts are restructured so as 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 case. 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 will restructure his debts. Such a plan will generally include the repayment of loans secured by real estate 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 proceeding in Chattahoochee County, GA permits the individual debtor to pay down his debts, either whole or a part of it, under a payment plan under the supervision of the court. Debtors filing under this chapter can retain their properties with them while they stick to the plan or after they have paid off the required portion of debt. It involves the rehabilitation of the debtor to let the debtor 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 especially for individuals with regular income who want to clear their debts but are unable to do so in a timely manner. The purpose of this chapter is to enable financially distressed individual debtors to propose and carry out a repayment plan under which creditors are paid over an extended period of time generally three to five years. During this time the law forbids creditors from starting or continuing collection efforts.

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