Chapter 11 Bankruptcy Attorneys In Atlanta, GA
Managing a business can be difficult, but it’s especially difficult when you have significant debt. We’ve committed our practice to assisting business owners in Atlanta and the surrounding areas in resolving their debt difficulties through Chapter 11 bankruptcy. We understand the importance of our client’s businesses, which is why we thoroughly evaluate all aspects of their situation before suggesting the best bankruptcy options to them.
Our Atlanta Chapter 11 bankruptcy attorneys have handled a wide range of business-related bankruptcy issues. You can trust that we have the experience and resources to handle all of your sophisticated legal needs. Robl Law Group takes pleasure in providing personalized representation without sacrificing quality, which is one of the numerous advantages you’ll notice when you deal with our lawyers. Contact our legal team today for a free consultation and to learn more about how we can help you and your business.
What Is Chapter 11 Bankruptcy?
The United States Bankruptcy Code, Chapter 11, allows a debtor to restructure their finances and accumulated debt through a reorganization plan approved by the bankruptcy court. The idea is to reduce obligations and modify payment terms in order to help a debtor return to profitability and continue operations while these occur. A company may sell off some assets and reduce its size under Chapter 11 in order to become liquid once more by paying down some of its creditors.
Although many large companies like to file Chapter 13 because it can be less expensive, this isn’t always the case. If a business wants to restructure its finances but has amassed too much debt to qualify for Chapter 13, Chapter 11 may be an important safety net. Filing for a Chapter 11 bankruptcy is suggested if a company’s financial problems are due to excessive debt or because the business owns several mortgaged properties and cannot meet Chapter 13’s requirements.
Reasons For Filing Chapter 11 Bankruptcy
There are a number of reasons for filing Chapter 11, including that the filing can:
- Stop pending collection actions
- Stop lawsuits
- Stop or delay foreclosures
- Reduce the total amount of debt that must be repaid
- Repay debts over time
However, filing Chapter 11 necessitates the sale or surrender of any unnecessary assets in the process of assisting the debtor. It’s important to know that Georgia’s Bankruptcy Code gives identical safeguards to individuals and small businesses who are overwhelmed with debt.
The option of Chapter 11 bankruptcy is available to small firms, and it has several benefits over other forms of bankruptcy. Small companies owned by partnerships, limited liability companies, or corporations may use Chapter 11 to restructure and continue to operate because it is the only form of bankruptcy that allows them to do so. Individual company debtors who wish to reorganize but who owe too much money under Chapter 13 criteria are also able to file for Chapter 11 bankruptcy. To learn more about your business bankruptcy options, it’s highly recommended that you speak with a qualified Atlanta Chapter 11 bankruptcy attorney as soon as possible.
The Chapter 11 Bankruptcy Process In Georgia
In Georgia, there are several procedures to complete the Chapter 11 bankruptcy procedure, including drafting an agreement with your attorney and getting it approved by your creditors. The plan you devise must address all of the following concerns:
- Classify all creditor claims
- Define how each class will be addressed under the plan
- Obtain approval of the plan by all creditors, especially those involving contractual changes
- Find out whether a U.S. Trustee will be appointed to oversee restructured operations
- Find out whether your case warrants a creditors committee to oversee the plan
In most Chapter 11 bankruptcies for small businesses, no trustee is appointed. The debtor in possession continues to operate the firm rather than a trustee being appointed. If the court determines that the debtor is dishonest or unskilled in his or her ability to handle required business matters, it may only appoint a trustee in a Chapter 11 bankruptcy case. Nonetheless, while the debtor may continue to run the company, he or she loses control over key decisions. These choices are made by the bankruptcy court, which has ultimate authority over:
- Any sale of assets
- Entering into or breaking a lease
- Mortgage commitment
- Any borrowing, licensing, expanding, or shutting down of business operations
- Any retention of, or payment to, attorneys or other professional advisors
The Role Of Creditors In A Chapter 11 Bankruptcy
Creditors, investors, and other stakeholders have a vote on all bankruptcy court actions. When deciding how to proceed, the bankruptcy court will take into account suggestions. Depending on the size of the firm and/or the complexity of your situation, this procedure may take anything from a few months to several years. In some situations, it’s not the debtor who files for bankruptcy; instead, a group of irritated creditors files an involuntary Chapter 11 petition against a company in default. Creditors can often throw a wrench into the bankruptcy process which is why having an experienced Atlanta Chapter 11 bankruptcy attorney by your side is so important.
Frequently Asked Questions
Do I Have To Be Operating A Business To File Chapter 11 Bankruptcy?
Clients frequently inquire if they must operate a business in order to file Chapter 11. The short answer is yes. In order to have a successful case, the company must be in operation in some fashion. The issue with a Chapter 7 bankruptcy is whether or not you can present to the court a feasible reorganization plan. In most cases, you would need a company that is operating in order to file for Chapter 11 bankruptcy. However, there could be scenarios where a firm has an extended shutdown before resuming operations. A Chapter 11 bankruptcy may be a viable option for you, but it is important to evaluate each scenario on an individual basis. That is why it’s critical to select your Atlanta Chapter 11 bankruptcy lawyer carefully so that they understand how to properly advise you on your best alternatives.
How Are Disputed Claims Resolved In A Chapter 11 Bankruptcy?
In Georgia, as well as in many other states, a disputed claim might arise when a consumer files for bankruptcy. If you disagree with the creditor or debtor about a claim, there is a procedure for submitting an objection to the proof of assertion or bringing a lawsuit in bankruptcy to object or value the claim.
Who May File Under Chapter 11 Bankruptcy?
Many people wonder if anybody in Georgia can file for Chapter 11 bankruptcy. There are now three distinct types of Chapter 11 bankruptcies available. The regular Chapter 11 bankruptcy is one of them. The small business Chapter 11 bankruptcy, sometimes known as a Class 5 Chapter 11 bankruptcy, is another option. Each class has different requirements, but any individual who operates a business that continues to operate may apply for a Chapter 11 bankruptcy, whether it’s a corporation or a sole proprietorship, or a limited liability company.
Contact An Atlanta Chapter 11 Bankruptcy Attorney Today
Robl Law Group has years of expertise representing both borrowers and lenders in bankruptcy cases throughout Georgia, and our highly experienced Atlanta Chapter 11 bankruptcy attorneys are well-equipped to handle both personal and business bankruptcy cases. We’re confident that we can assist you with any problem, regardless of how complicated it may appear, because of our varied legal backgrounds and experience dealing with a broad range of bankruptcy-related commercial and personal legal issues. We encourage you to contact our office if you want to learn more about Chapter 11 bankruptcy or other bankruptcy choices so that you can choose which is best for you.