Columbus GA Chapter 11 bankruptcy attorney

Columbus GA Chapter 11 bankruptcy attorney

When to file Chapter 11 in Harris County GA

An individual may file under chapter 11; but, the provisions of chapter 11 are usually used to reorganize a business. Chapter 11 allows the debtor to manage its business by means of a plan of reorganization, that should meet certain legal criteria. By creating chapter 11, the Congress provided the debtor a chance to restructure its finances so that it can continue to operate, provide employment, pay its creditors, and provide a return for its stockholders. Since chapter 11 deals with an ongoing business, the most likely persons who have knowledge and details of the business are the present managers who generally continue operations during the chapter 11 proceeding. The main rationale of business reorganizations is that the value of an operating is much more than it would be if its assets were sold. If a business has financial difficulties, including unable to pay its creditors because of cash flow problems, it can consider filing a chapter 11 bankruptcy. If the business can extend or reduce its debts or significantly decrease its operating expenses, it generally can be returned to a viable state. Often, it is makes more economic sense to reorganize than to liquidate, since doing so protects jobs and assets. Cooperation among the various interests is vital to a successful reorganization.

———————
Columbus Georgia bankruptcy lawyer | Bankruptcy attorneys in Columbus GA and Fort Benning – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Columbus GA and Fort Benning

http://www.columbus-ga-bankruptcy.com