When standard enforcement methods fail because a debtor company is hiding assets or prioritizing other payments, initiating insolvency proceedings is the most powerful legal lever available to a creditor. At Legal Sandbox Georgia, we utilize the "Law of Georgia on Rehabilitation and the Collective Satisfaction of Creditors" to force a resolution. Filing for insolvency is not merely about shutting a company down; it is a strategic move to strip the debtor’s management of control. Once the court accepts our application, a moratorium is instantly declared, freezing all of the debtor’s independent financial activities and preventing them from disposing of any property without court approval.
Our legal team prepares the complex insolvency application, demonstrating that the debtor is unable to pay its mature debts (insolvency) or faces imminent financial difficulty. The immediate goal is the appointment of a court-sanctioned "Rehabilitation Supervisor" or "Bankruptcy Manager." This neutral third party takes over the supervision or management of the company, displacing the directors who refused to pay you. This ensures transparency; the manager gains access to all accounting records, bank transactions, and contracts, allowing us to uncover hidden assets or void suspicious transfers made prior to the filing to defraud creditors.
We represent your interests throughout the entire lifecycle of the proceedings, particularly during the critical Creditors' Meeting. In Georgia, the process can take two paths: Rehabilitation, where a plan is agreed upon to pay creditors over time while the business survives, or Bankruptcy (Liquidation), where the company’s assets are sold off to pay debts. We aggressively advocate for your priority in the ranking of claims. By initiating this process, we often find that debtors miraculously find the funds to settle the debt to avoid losing their business, making this the ultimate pressure tactic in corporate debt recovery.
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