How to File Bankruptcy for a Business in Georgia
Just like individuals, business can fall on financial hard times and bankruptcy may be the only solution. The term "business bankruptcy" refers to bankruptcy filed by incorporated companies rather than individuals. If bankruptcy is an option for your business, hire an attorney. Unlike individuals, businesses cannot represent themselves in a Georgia bankruptcy court, therefore an attorney must represent the business. However, to save costs, Georigia businesses can do a lot of the preparation and legwork before hiring an attorney to file the bankruptcy petition.
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Instructions
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Pick a bankruptcy court that is convenient for you. In Georgia, there are several courts that hear bankruptcy cases. The United States Bankruptcy Court Northern District of Georgia has four divisions, in Gainesville, Rome, Atlanta and Newnan. Similarly, the United States Bankruptcy Court Middle District of Georgia has two divisions: Columbus and Macon, and the United States Bankruptcy Court Southern District of Georgia has six divisions: Augusta, Brunswick, Dublin, Savannah, Waycross, and Statesboro.
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If the business is not incorporated, you cannot file for a business bankruptcy and you will need to file a personal bankruptcy under Chapter 7 or 13 to discharge your personal obligation for any business-incurred debts. If you are uncertain whether your business is incorporated or not, you can contact the Georgia Secretary of State.
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Determine which bankruptcy chapter you want to file under. Although Chapter 11 is most commonly used for businesses, sole proprietorships and partnerships may be eligible for Chapter 13 and family-owned farms can file under Chapter 12. To qualify for Chapter 13, however, the sole proprietorship or partnership must have less than $807,750 in secured debt and less than $269,250 in unsecured debt. Businesses can also file under Chapter 7, which is a total liquidation.
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Hire an attorney who can assist you with the preparation of your bankruptcy petition and file it on the business' behalf. Once the petition is filed, the bankruptcy process begins. This process differs based on each bankruptcy chapter. If you filed Chapter 7, your assets will be moved to a Trustee who will sell them off. If you filed Chapter 13 or Chapter 11, the court will reorganize your debt and order a debt repayment plan.
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