Unlike Chapter 7 bankruptcy, in which you liquidate your business assets, or Chapter 13 bankruptcy, where you establish a plan to pay back your debt, you may decide to restructure your business and its debts by meeting your obligations from future earnings. For Atlanta businesses, this bankruptcy method is Chapter 11, also known as reorganization. When you decide to reorganize your business under Chapter 11 bankruptcy, you must protect the interests of your creditors, stockholders, and bondholders when developing the reorganization plan.
The first step when thinking about Chapter 11 as an Atlanta business is to consider if this method is right for you. Consider the following issues:
Berry & Associates knows how to analyze your personal circumstances, including any businesses that you own. We can help identify when a Chapter 11 filing will save your Atlanta business and allow it to head toward a successful future.
Once you have decided to file for Chapter 11 in Atlanta, or anywhere in Georgia, you must prepare and file a plan for dealing with your debt to emerge from bankruptcy. Your plan must be approved by your creditors, and the timeframe for the restructuring process could be just a few months to several years. It all depends on the size of your company and the overall complexity of your situation. Requirements for this plan include: