Jones County, GA Chapter 11 and 13

Jones County, GA Chapter 11 and 13

Chapter 11 bankruptcy in Jones County, GA allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured to permit the debtor to continue his business operation. In general 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 may submit a plan of reorganization within 120 days of the filing of the bankruptcy proceeding. 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 are generally proposed to be paid over the remaining useful life of the collateral, which is typically five to ten years.

Chapter 13 bankruptcy proceeding in Jones County, GA 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. Those who file under this chapter can retain their properties with them while they stick to the plan or after they have paid off the required portion of debt. It involves the rehabilitation of the debtor to allow him or her to use future earnings to pay off creditors.

A chapter 13 bankruptcy is also referred to as 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 especially for individuals with regular income who want to clear their debts but cannot 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 the debts are paid off over an extended period of time usually three to five years. During this time the law forbids creditors from starting or continuing collection efforts.

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