Business Bankruptcy - Chapters 7&11;
By: Julie Koenig
We recognize the growing challenges that business owners face when attempting to keep businesses profitable in an adverse economy. When your business is facing serious financial problems, Chapter 11 or 7 bankruptcy may provide you the debt relief you need.
Our respected Texas bankruptcy practice serves owners of small to medium sized businesses when they have been faced with overwhelming debt issues that have affected the success of their businesses.
Our attorneys have effectively handled simple and complex business bankruptcy cases and recognize the significant financial stakes involved when your business is unable to stay solvent. Our team has helped thousands of business owners find debt relief through Chapter 11 and Chapter 7 bankruptcy.
Chapter 11 bankruptcy is typically defined as reorganization bankruptcy for business owners. This chapter allows business owners to continue to operate their businesses through reorganization methods, offering a complete or partial relief from debt and contracts and giving the business a fresh start.
During the court-supervised reorganization plan process, the owner typically stays in control of the business. This often gives the owner time to re-evaluate his or her business plan, return excessive equipment, change locations and create new initiatives that will increase profitability and decrease expenses.
Owners may also use Chapter 11 bankruptcy as a liquidation tool if they would like to sell business property. This chapter will allow the owner to do an orderly liquidation of his or her business property, as opposed to the liquidation process in a Chapter 7 bankruptcy where a trustee will auction everything.
Individuals who exceed the qualifiable income levels for Chapter 13 bankruptcy can also file Chapter 11 bankruptcy.
Chapter 7 bankruptcy is an option for business owners who own business property but would like to permanently shut down their businesses. For business owners with few assets, business Chapter 7 bankruptcy may be the best debt relief option.
Business bankruptcy cases are some of the most difficult in bankruptcy law, requiring a knowledgeable and experienced attorney to help navigate the complex process. Our attorneys are prepared to help you understand your best debt relief option depending on your circumstances and guide you through the process, step by step. In addition, we can help ensure that you keep your business after the reorganization and that you receive the maximum allowable debt relief in your bankruptcy case.