Macon, Georgia Chapter 11 and 13

Macon, Georgia Chapter 11 and 13

Chapter 11 bankruptcy in Macon, Georgia 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 permit the debtor to continue the operation of the business. Basically any partnership, corporation or limited liability entity except a governmental unit can 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 case. Under a typical reorganization plan, the debtor will restructure the 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 proceeding in Macon, 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 assets with them while they follow the plan or after they have paid off the required portion of debt. This chapter involves the rehabilitation of the debtor to let the debtor to use future earnings to pay off creditors.

A chapter 13 bankruptcy is also called 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 designed for individuals with regular income who want to clear their debts but are unable to do so in a timely way. The purpose of Chapter 13 is to permit financially distressed individual debtors to design and work 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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