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Chapter 11 Bankruptcy

We help individuals and businesses restructure and get out debt

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Filing Chapter 11 Bankruptcy

THE BUSINESS BANKRUPTCY LAW HAS CHANGED IN YOUR FAVOR!

If you are a small business owner undergoing financial hardship, you have probably thought of filing for a Chapter 11 bankruptcy, but the costs and hurdles involved might have swayed your decision otherwise.

Before 2019, small businesses wanting to file a Chapter 11 bankruptcy had to go under the same hurdles as a large corporation such as Delta Airlines or General Motors. Under the new law, plan confirmations for small business bankruptcies are much more efficient.

Call us at 888-577-1482 to discuss your case.

Chapter 11 Bankruptcy and Georgia Sales Tax

If your Georgia sales tax certificate of registration has been revoked in the Atlanta area and the GDOR has rejected your installment agreement, Chapter 11 Bankruptcy may be your only option.

Important Considerations:

  • A payment plan for unremitted sales tax is usually your only bite at the apple.

  • Once you default on your payment plan, it is completely within the GDOR’s discretion to allow you another chance.

  • This is usually based on your track record and credit history.

Chapter 11 Bankruptcy as a Solution

Your business can file Chapter 11 bankruptcy on sales tax owed to the GDOR.

  • Under the new law of sales tax evasion in Georgia, not paying back unremitted sales tax is a felony and punishable by time in prison.

  • Bankruptcy should always be used as a last resort, when all other options of collecting money from family, friends, banks, and other commercial lenders have failed.

  • Filing for Chapter 11 bankruptcy on sales tax owed to the GDOR provides the debtor with an automatic stay of protection.

  • The business will incorporate all of its debt, not just sales tax, and propose an offer of payment to the U.S. Bankruptcy Trustee.

Call our law firm to discuss your options to file a Chapter 11 bankruptcy.

Frequently Asked Questions

What is Chapter 11 bankruptcy and who is it for?

Chapter 11 bankruptcy is a legal process that allows businesses to reorganize their debts while continuing operations. It is commonly used by businesses, both large corporations and small businesses, that are experiencing financial distress but want to avoid liquidation.

How did the 2019 law change benefit small businesses filing Chapter 11?

The 2019 law introduced provisions that make it easier and more affordable for small businesses to file for Chapter 11 bankruptcy. It streamlines the confirmation process, reducing legal complexities and administrative costs, making reorganization more accessible.

Can Chapter 11 help if my Georgia sales tax certificate was revoked?

Yes, if the Georgia Department of Revenue (GDOR) has revoked your sales tax certificate and rejected your installment agreement, Chapter 11 bankruptcy may provide a path forward. It can offer an automatic stay and allow your business to propose a structured repayment plan.

Is unpaid sales tax in Georgia considered a criminal offense?

Yes, under Georgia law, failure to pay unremitted sales tax can be treated as sales tax evasion, which is a felony offense punishable by imprisonment. It is critical to address this issue through all available legal means, including bankruptcy when necessary.

What debts are included when filing Chapter 11 bankruptcy?

When a business files for Chapter 11, all of its debts are included, not just sales tax. The business must submit a comprehensive repayment plan covering all outstanding obligations to the U.S. Bankruptcy Trustee for review and confirmation.

Chapter 11 Individual

  1. All monthly billing statements and collection agency correspondence and notices received within the prior ninety (90) days for all bills (mortgage, car, credit cards, bank loans, medical, student loans etc.) other than utilities (unless there is a utility bill default) and monthly billing statements for all corporate bills for which you have personal liability;
  2. A list of personal property and household furnishings (item by item) with a valuation for each item representing the current value of the item;
  3. Current account statements (bank, brokerage, financial, deferred compensation, pension, 401k, IRA, Education IRA or other account) for the prior 6 months;
  4. All current paycheck advice(s) or stub(s) and sources of income for the prior 6 months for yourself and your spouse, if any;
  5. All life insurance policy statement(s);
  6. Motor Vehicle, motorcycle, boat & other titles;
  7. All deeds showing ownership of your residence or any other real property;
  8. Copy of all appraisals of your residence or any other real property within last 2 years;
  9. Prior two (2) years Federal 1040 income tax returns and amended returns;
  10. Copy of any foreclosure suit, other lawsuit or legal proceedings filed or pending within last year;
  11. Copy of any personal injury suit, workmen’s compensation suit or itemization of claim against any third party;
  12. Copy of any current personal or real property lease(s);
  13. Information or itemization of any other personal property or real property not otherwise provided;
  14. List of any prior addresses in last two (2) years and dates of occupancy;
  15. List of payments totaling in excess of $600.00 to any single creditor within the prior 90 days and the date(s) and amount(s) of payment(s) made;
  16. Monthly family budget;
  17. Copy of your driver’s license and social security card; and,
  18. A Credit Counseling Certificate received from an approved credit counseling agency within the prior 180 days and a copy of the debt repayment plan, if any developed by the approved credit counseling agency for you. (hbcce.org)

Chapter 11 Entity

  1. All account payables, monthly billing statements and collection agency correspondence and notices received within the prior ninety (90) days for all payables (mortgage, car, credit cards, bank loans, trade credits, etc.);
  2. A list of property (item by item) with a valuation for each item representing the current value of the item;
  3. Current account statements (bank, brokerage, financial, pension, or other account) for the prior 6 months;
  4. All insurance policy statement(s);
  5. Motor Vehicle & other titles;
  6. Prior two (2) years Federal income tax returns and amended returns;
  7. Copy of all lawsuit or legal proceedings filed or pending within last year;
  8. Copy of any real property or personal lease(s), including equipment and service leases;
  9. Information or itemization of any other personal property or real property not otherwise provided;
  10. List of payments totaling in excess of $5,850.00 to any single creditor within the prior 90 days and the date(s) and amount(s) of payment(s) made;
  11. List of all payments to officers and insiders in the one year prior to filing;
  12. List of Accounts Receivable; and,
  13. 13. All financial statements issued in the last two years.

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Ansari Law Firm is a multi-state business and state tax law firm, with offices in Texas (Dallas, Fort Worth, San Antonio & Houston), Georgia and Illinois.

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Ansari Law Firm is a multi-state business and state tax law firm, with offices in Texas (Dallas, Fort Worth, San Antonio & Houston), Georgia and Illinois.

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