Columbus, Georgia Chapter 11 and 13

Columbus, Georgia Chapter 11 and 13

A debtor under Chapter 11 in Columbus, Georgia can 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 permit the debtor to continue the business operation. In general any partnership, corporation or limited liability entity except a governmental unit can 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 proceeding. Under a typical reorganization plan, the debtor will 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 Columbus, Georgia allows 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 keep their properties with them while they follow the plan or after they have cleared 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 known as 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 are unable to do so in a timely manner. The purpose of this chapter is to permit 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. The creditors are forbidden from starting or continuing collection efforts during this time.

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