Discharging business debt through Chapter 11 bankruptcy

As a business owner, you may feel overwhelmed by a bad few months of business and not know which way to turn. Even the most lucrative of businesses can go through hard times, and this is why there are governmental initiatives in place to help businesses get some of their debts discharged.

If you are interested in benefiting from the debt discharge possibilities of Chapter 11 bankruptcy, it is important that you take the time to understand the entire process and the implications that it is likely to have on your specific situation.

Is my business eligible for Chapter 11 Bankruptcy?

If you are a small business and you have debts that are less than $2,566,050, and there is no creditor's committee that is associated with your company, you will most likely be eligible to file for Chapter 11 bankruptcy.

How does the automatic stay work?

When your Chapter 11 bankruptcy filing begins, you will benefit from an automatic stay. This means that you will no longer be subject to creditor collection efforts and activities, and will no longer need to worry about foreclosure or repossession due to debt. Once you have filed, it means that you can stop thinking about your increasing debt and start planning to pay it off as efficiently as possible.

In Chapter 11, you pay off your debts by looking at the way that your business is structured and earns income. From there, you will start to devise a repayment plan over a certain timeframe so that you can work toward becoming debt free in the future.

No Comments

Leave a comment
Comment Information

Award Winning Atlanta Attorneys

peer rated preeminent peer rated martindale hubbell super lawyers georgia trend legal elite bar register 1916-2016

Put The Future Of Your Business In Our Capable Hands

Whether you need help forming your business, protecting intellectual property, resolving a business dispute, understanding your debt relief options or something in between, we are here to help. Contact us online or call our Atlanta office to schedule a consultation today: 678-701-9235.

Contact us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Jones & Walden, LLC
21 Eighth St NE
Atlanta, GA 30309

Phone: 678-701-9235
Fax: 404-564-9301
Atlanta Law Office Map