Managing business entities bear different kinds of complexities and difficulties. Success may come after taking risks. However, it may be inevitable that unexpected setbacks may also be bound to happen. In the event of a financial crisis due to having your business become unprofitable, one of the things that you can do to prevent further losses is to file for bankruptcy. The need to file for bankruptcy comes into light when you no longer have the capability to pay your liabilities. It also becomes the option you may want to take when you already feel the need to be relieved from these exasperating financial obligations.
Here are the steps in filing for bankruptcy in Georgia:
Hire your bankruptcy attorney.
Despite having its purpose straight-forward and easily understandable, filing for bankruptcy is a legal proceeding that you may want to hire your attorney to help you understand this legal undertaking. Every city of Georgia has lawyers that could assist you regarding these matters. Atlanta bankruptcy lawyers, for example, are very capable professionals that can be contacted for consultations if you are from the city. Provide your attorney with all the information he/she needs as your attorney will be evaluating your current financial situation and recommending whether you should file a chapter 7 or chapter 13 bankruptcy.
A Chapter 7 Bankruptcy will have this process:
Take the means test.
The means test proves whether you can or cannot afford to repay your debts with the income you have. It is after being deemed eligible for filing for bankruptcy that you may submit your petition.
File a Chapter 7 bankruptcy petition
You must submit all the documents required in filing including your financial health and latest financial transactions.
The court will immediately issue a bankruptcy stay on your properties.
When the petition is approved, the court will issue a bankruptcy protection on your assets from any way of -credit collection while the case is ongoing.
Your creditors will be notified and a schedule for the “Meeting of Creditors” will be set.
While waiting for the meeting, a Chapter 7 trustee will investigate your case and present what assets can be liquidated and what fall under Georgia’s exemption.
While 90 days are given to the creditors to file an objection to your dischargeability, after the “Meeting of Creditors”, you are given 45 days to finish a financial management course and file your petition.
After the 90-day deadline for objection is completed, the court will then process an order discharging you from your debt.
In a chapter 13 bankruptcy, it goes like this:
File a Chapter 13 bankruptcy petition
You will need to submit all the needed documents for the petition.
Additionally, as a Chapter 13, you must also submit your repayment plan to the court, your creditors, and the Chapter 13 trustee who will be appointed to investigate your case.
A formal “Meeting of Creditors” will be scheduled and held for the creditor and the trustee to have opportunities to ask about the petition and comment on the repayment plan.
After the first meeting, you will have to wait for the confirmation hearing which means your creditors have no objections to the repayment plan you have submitted.