In these uncertain economic times, it is not uncommon for businesses in Georgia to struggle financially and even face collapse. However, while some small business owners may view bankruptcy as a failure, it could actually be a hidden opportunity.
Different Types of Bankruptcies for a Business in Georgia
There are two types of bankruptcy options that small businesses have in Georgia. They include the following:
- Chapter 7: This bankruptcy option, also known as liquidation, requires that an entity turn over most of its assets to pay off creditors. The remaining debts will be discharged, and the business will no longer exist.
- Chapter 11: This bankruptcy relief allows small businesses to remain in operation while they reorganize their debts in accordance with a court-approved plan.
However, to better understand your legal options when it comes to bankruptcy, consider discussing your situation with an experienced Georgia bankruptcy attorney. These legal professionals can review what is happening with your business, go over the options you have, and come up with a solution that works best for your company and future.
What Happens When a Small Business Files for Bankruptcy in Georgia?
After a business files for bankruptcy, the business owner’s creditors must stop their efforts when it comes to trying to collect debts. Furthermore, depending on the type of bankruptcy involved, these entities can not only continue normal business operations but if they have to close their business, they may be allowed to keep certain property and start over if desired.
How Long Does the Bankruptcy Process Take In Georgia?
Determining a bankruptcy timeline is a challenging task. For one, Chapter 7 and Chapter 11 bankruptcy timelines are quite different. Where Chapter 7 can take a matter of months, which is incredibly beneficial for those looking for a quick fresh start, Chapter 11 may require the debtor to commit to a repayment plan that can take a few years. However, this plan is usually preferable to those wanting to keep their business solvent and try to return it to being profitable.
Reach Out To a Georgia Bankruptcy Lawyer Today To Discuss Your Options
If you are considering bankruptcy for your small business but need help figuring out where to start with the process or want to know more about what bankruptcy can mean for you going forward, consider discussing the matter with an experienced Georgia bankruptcy attorney. These legal professionals can go over the bankruptcy options you have, review what will happen to your business going forward, and help you fight for your company’s rights and interests every step of the way.
Contact the Law Firm of Seymour and Associates, P.C Today
Bankruptcy can mean a lot of things for you and your company. However, it is crucial to understand that it can also have numerous benefits, such as debt elimination, protection from legal action, and property protection. That is why if you want to know more about bankruptcy and the benefits it can provide you and your business, contact the Law Firm of Seymour and Associates, P.C., today to arrange a free case evaluation or call us at 706-868-1968.