Muscogee County, Georgia chapter 7 business bankruptcy attorney

A Chapter 7 case starts with the debtor filing a petition with the bankruptcy court. Along with the petition, the debtor must also file with the court several schedules of assets and liabilities, details of current income and expenditures, a statement of financial affairs, and details of executory contracts and unexpired leases. The schedules and statements include the following information:
Details of of all creditors and the amount and nature of their claims;
The source, amount, and frequency of the debtor’s income;
Details of of all of the debtor’s property; and
Details of of the debtor’s monthly living expenses (food, clothing, shelter, utilities, taxes, transportation, medicine, etc.).
Businesses intending to file Chapter 7 should seek the help of a seasoned Muscogee County, Georgia chapter 7 business bankruptcy attorney since the chapter 7 business bankruptcy process is complicated.

Under Chapter 7, the business stops its activities and goes completely out of business. A trustee is appointed to liquidate the company’s assets and the money is used to clear the debt, which may include debts to creditors and investors.
The first to be paid are the investors who take the least risk. Secured creditors take less risk because the credit that they extend is typically supported by collateral, like a mortgage or other assets of the company. They realize they will be paid first if the company declares bankruptcy.
Bondholders have larger potential of getting back their investments than stockholders, because bonds represent the debt of the business and the business has accepted to pay bondholders interest and to pay back their principal. Stockholders own the company, and take more risk. They can make more money if the business does well, but they can lose money if the company does badly. The owners are last in line to be repaid if the company closes. Bankruptcy rules decide the order of payment.

———————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 Benninghttp://www.columbus-ga-bankruptcy.com