Atlanta Chapter 11 Bankruptcy

FILING Chapter 11 bankruptcy in Atlanta

A business in Atlanta that files for Chapter 11 bankruptcy is allowed to restructure debt payments and keep assets, unlike a Chapter 7 bankruptcy that provides for the process of a liquidating assets of a business or individuals. Chapter 13 bankruptcy is a third type of bankruptcy that is usually filed by individuals who do not qualify for Chapter 7 and who want to pay off their debts over a period of three to five years.

Chapter 11 in Atlanta may be the wisest choice when a reorganized business is expected to be worth substantially more than the value of the assets of the business if they were sold individually. Chapter 11 provides protections such as the ability to cancel some debts and the ability to transfer some or all of the newly reorganized company to creditors whose debts were cancelled. When filing for Chapter 11 business bankruptcy in Atlanta or elsewhere, companies may be able to save jobs and the remaining creditors may have smaller losses than if a company chooses to be dismantled or liquidated.

A major benefit of a Chapter 11 bankruptcy is that a debtor is allowed to keep all or a portion of its assets in Chapter 11. In contrast, under Chapter 7 bankruptcy, a debtor can retain only a limited amount of statutorily defined exempt property. Under the U.S. Bankruptcy Code, businesses are not allowed to exempt property.

Chapter 11 bankruptcy may be filed by businesses including the following:

• Corporations
• Partnerships
• Sole proprietorships

Under Chapter 11 bankruptcy, the debtor in possession keeps possession of the bankruptcy assets while going through the process of reorganization.

During a Chapter 11 bankruptcy proceeding, the owner of the business remains in possession until one of the following happens:

Our bankruptcy lawyers in Atlanta can help

A lawyer skilled in all types of bankruptcy in Atlanta is the best bet if you are considering any type of bankruptcy. Contact the Law Offices of Michael R. Rethinger, LLC or call 888-552-8180 for answers to all your questions about bankruptcy in Atlanta.