Can I keep my business open during a liquidating plan in a Chapter 11 bankruptcy?

Yes, in most cases it is possible to keep your business open during a liquidating plan in a Chapter 11 Bankruptcy in Georgia. Under Chapter 11 Bankruptcy Law, it is possible for a business to remain open and continue to operate while developing a plan for reorganizing and eventually paying creditors. During the plan, the debtor is allowed to keep possession of assets and business operations. In order to keep a business operating during a liquidating plan, the debtor must prove that the current business operations are profitable and can repay creditors in a reasonable amount of time. During the plan, the debtor must prepare detailed financial statements and reports to provide to the court. The debtor will also need to submit a written plan for reorganization, detailing how and when creditors will be paid. As long as the debtor is in compliance with the court-mandated terms of the liquidating plan in a Chapter 11 Bankruptcy, the business can remain open and operational during the duration of the bankruptcy proceedings. In order to keep the business open, the debtor must actively work with creditors to agree on a payment plan. It is important to remember that the debtor cannot use business funds for personal use during the liquidating plan and must continue to pay taxes and other obligations.

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