On October 6, Fayetteville-based company Psycare LLC filed for bankruptcy protection. Many small businesses across Georgia are turning to bankruptcy protection amid rising economic pressures. The move allows Psycare LLC to restructure its debts and continue operating.
Psycare LLC Filed for Chapter 11 Bankruptcy
According to PacerMonitor, Fayetteville-based Psycare LLC filed for Chapter 11 bankruptcy. The company filed for bankruptcy under subchapter V on October 6. The company has also requested to pay the filing fee in installments, pointing to a financial crisis.
Psycare LLC provides mental health consulting and advisory services throughout Georgia. However, the company has faced financial difficulties, leading to this bankruptcy filing.
Case Filing and Court Proceedings
According to the report on PacerMonitor, the company filed for Chapter 11 Subchapter V bankruptcy. Chapter 11 Subchapter V filing is designed for small businesses looking to reorganize while continuing operations. The company filed its petition on October 6 in the Northern District of Georgia Bankruptcy Court.
Psycare LLC will outline its plan to restructure debts and keep the business running. The company must submit its plan by January 5, 2026, which, if approved, would allow it to avoid liquidation.
Psycare LLC has also requested to pay the court filing fee in installments. The company is facing serious financial troubles, which have led to this application. Given its financial challenges, Psycare LLC must gain court approval to reorganize successfully.
Court approval would allow Psycare LLC to continue operations and gradually pay off its debts. Chapter 11 bankruptcy is a strategic move made by companies to avoid liquidation. It gives them time to reorganize and work on balancing out their finances.
The company’s ability to avoid liquidation hinges on the court’s approval of its reorganization plan.
