Warner Robin, GA Chapter 11 and 13

Warner Robin, GA Chapter 11 and 13

A debtor under Chapter 11 in Warner Robin, GA can enter into an agreement with creditors under which all or a part of the business continues. The business’s debts are restructured 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 proceeding. Under Chapter 11, only the debtor can submit a plan of reorganization within 120 days of the initiation of the bankruptcy case. Under a typical reorganization plan, the debtor attempts to 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 collateral, which is typically five to ten years.

Chapter 13 bankruptcy proceeding in Warner Robin, GA permits the individual debtor to pay down his debts, either the entire amount or a part of it, with the help of a payment plan under the supervision of the court. Those who file under this chapter can retain their possessions with them while they follow the plan or after they have paid off the required portion of debt. It involves the rehabilitation of the debtor to let him or her 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 especially for individuals with regular income who want to clear their debts but cannot to do so in a timely method. The purpose of this chapter is to allow 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. The creditors are forbidden from starting or continuing collection efforts during this time.

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