Understanding Chapter 11 Business Bankruptcy
When a commercial enterprise goes under, it’s the entire economy that suffers. Capital is lost, hardworking people lose their jobs, laborers become unemployed and other organizations lose valuable business partners. That is why the federal government allows businesses that are in default to reorganize under Chapter 11 bankruptcy. Chapter 11 bankruptcy is available to all types of businesses in the state of Georgia, regardless of whether or not they are structured as corporations, partnerships or sole proprietorships.
If you have a potentially viable business that is being strangled by debt, Chapter 11 bankruptcy may be your best solution. For three decades, The Law Office of Evan M. Altman has been guiding the management teams of Atlanta and northern Georgia businesses through the bankruptcy process.
How Chapter 11 Works For Georgia Businesses
When a business recognizes that it will not be able to continue to timely pay its creditors, one option is for its attorney to file a petition under Chapter 11 through the federal bankruptcy court. Upon filing, an automatic stay goes into effect that prohibits the business’s creditors from seeking repayment without a court-approved plan of reorganization “plan.” The petitioning corporation must submit a “plan” for the repayment of its debt. The creditors must vote on the plan. A trustee or fiduciary may be designated to oversee the plan. In many cases, the business’s management is allowed to act as the trustee. This type of fiduciary arrangement classifies the debtor as a “debtor in possession.” As long as the company fulfills the requirements of the plan, it can emerge from Chapter 11 without interruption so that it can continue in business.
Alternatively, if continuing the operation of the business is no longer feasible, a sale of the business assets could be accomplished under Chapter 11 through a Section 363 sale, or to examine whether Chapter 7 would be appropriate. The Law Office of Evan M. Altman provides sound legal advice to its corporate clients. Allow our veteran Chapter 11 bankruptcy team to review your case and determine whether you meet the requirements for debt relief under this section of the United States Bankruptcy Code.
Atlanta’s Law Firm For Chapter 11 Bankruptcy
For over 30 years, Atlanta’s business owners and executives have trusted bankruptcy attorney Evan M. Altman to guide them through turbulent financial crises. Sometimes all it takes is some debt relief to turn a beleaguered company into a burgeoning economic concern. To schedule an appointment with Evan M. Altman, contact our office at 770-285-7134 or complete our online contact form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.