770-609-1247 | Chapter 11 Business and Personal Bankruptcy

Coleman Legal Group, LLC

Call 770-609-1247 to Speak With an Experienced Roswell Georgia Bankruptcy Attorney.

A Chapter 11 bankruptcy affords businesses and individuals an opportunity to fully or partially repay debt in a more manageable way.  The most common reasons an individual would opt to file a a personal Chapter 11 bankruptcy case is that they have significant assets and/or significant income – but also have a debt crisis that cannot be resolved with bankruptcy protection. A person can file single or a joint Chapter 11 personal bankruptcy case with their spouse. The personal filing of Chapter 11 bankruptcy case is not common because of the complicated procedures and the relatively expensive attorneys fees associated with these cases.  In addition, most people’s situation is just not well suited for a personal Chapter 11 bankruptcy case.

Most people that file a personal Chapter 11 case will do so because they do not qualify for a Chapter 13 bankruptcy. There are specific limitation to the amount of debt a persona can have and file a Chapter 13 case. If an individual or two spouses filing together have over $383,175.00 in unsecured debts and/or more than $1,149,525.00 in secured debts they do not qualify for a Chapter 13 (as of April 2013) and must file for Chapter 7 or a Chapter 11. But if the debtor(s) do not qualify for a Chapter 7 – which is usually due to significant income – or there are assets they want to keep – then a Chapter 11 personal bankruptcy case is their only option.

In a Chapter 11 Bankruptcy, the individual(s) or business filing must provide a written disclosure statement to the bankruptcy court along with a reorganization plan for paying off their creditors over a three (3) to five (5) year period of time. Once the bankruptcy plan is approved by the court, the plan obligates the creditors and the debtor and can replace or come before all previous agreements between the debtor(s) and creditors.

The overriding goal in a business Chapter 11 bankruptcy case is to provide an opportunity for the business to revitalize and reorganize its financial affairs so that it become profitable and successful. The reasons a company may file for a Chapter 11 bankruptcy include: purchase contract problems, lease issues, past debt mishandling, law suits and other unexpected financial difficulties. In a Chapter 11 bankruptcy, the business must continue to pay all of its normal operating costs while operating while past debt obligations are put “on-hold” – in accordance with the bankruptcy “automatic stay”.

The debtor business must file with the local Federal bankruptcy court monthly expense reports as well as their “disclosure statement” – which the court will review to ascertain the business’s financial condition. A disclosure statement includes the business’s history, where it stands now, and its future plan to reestablish itself as an ongoing profitable business concern. After the bankruptcy court approves the business’ Chapter 11 bankruptcy plan, the case is no longer under the direct management of the court. However, the business is still expected to complete the bankruptcy plan according to its schedule.

A Chapter 11 bankruptcy plan must detail how much the business will pay back to its creditors, the percentage each creditor may claim, payment time periods, and all cancellation of purchase contracts. Factors that affect how much a company will pay monthly to its creditors include the business’s financial ability as well as its liquidation value and whether the debts are secured or unsecured. After reviewing the Chapter 11 bankruptcy plan, the creditors can decide whether to accept or reject the debtor business’s proposed plan.

Coleman Legal Group, LLC handles cases in the following cities and communities: Atlanta, Alpharetta, Roswell, Johns Creek, Milton, Cumming, Marietta, Sandy Springs, Woodstock, Kennesaw, Gainesville, Norcross, Lawrenceville, Midtown, Inman Park, Duluth, Buckhead, Dunwoody, Vinings and Smyrna.

Our attorneys frequently handle cases for clients residing in the following counties: Fulton, Gwinnett, Forsyth, Cobb, DeKalb, Henry, Cherokee, Douglas, Carroll, Coweta, Paulding, Bartow, Hall, Barrow, Walton, Newton, Rockdale, Henry, Spalding, Fayette and Clayton.

Coleman Legal Group, LLC’s Georgia lawyers practice in the areas of Bankruptcy, Divorce, Family Law, Immigration and Business Law. We have two convenient offices located at:

Alpharetta Georgia Office
5755 North Point Parkway
Suite 52
Alpharetta, GA 30022

Atlanta Georgia Office
659 Auburn Avenue Northeast
Atlanta, GA 30312

Copyright © 2014 | Coleman Legal Group, LLC | All Rights Reserved. Coleman Legal Group, LLC • 5755 North Point Parkway, Suite 52 • Alpharetta, GA 30022 • 770-609-1247 DISCLAIMER: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

Danny Coleman on Google+!

Powered by WordPress | Designed by Elegant Themes