Harris County, GA Chapter 11

Harris County, GA Chapter 11

Federal bankruptcy laws decide how corporations go out of business or recover from deep debt. A bankrupt corporation might file under Chapter 11 of the US Bankruptcy Code to reorganize its business and attempt to become profitable again. Management continues to operate the routine business activities, but all major business decisions have to be approved by a bankruptcy court.

If you own a business or corporation n Harris County, GA Chapter 11 is a reorganization proceeding to consider. There are certain circumstances you must meet. Some individuals whose debts are more than the limits of Chapter 13 may file Chapter 11. In Chapter 11, the debtor usually remains in possession of assets and continues to operate any business, under the supervision of the court and the creditors committee. The debtor proposes a plan of reorganization to the creditors, who vote on it. If accepted by the majority, the plan is confirmed by the court 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 cases in Harris County, GA the United States trustee, a federal employee, will not act as a case trustee, who is usually a private individual. The United States trustee is responsible for monitoring all chapter 11 proceedings and has mandate to appear and be heard on any issue in any case, but may not submit a plan. The case trustee, however, is responsible for management of the property of the estate, operation of the debtor’s business, and, if necessary, the filing of a plan of reorganization. Section 1106 of the United States Code authorizes the trustee to submit a plan “as soon as practicable” or, alternatively, to file a report detailing why a plan will not be filed or to recommend that the proceeding be converted to another chapter or dismissed.

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