If your business is running into financial difficulty there may be a chance that you are speaking to other business associates about this who they themselves have used a bankruptcy to assist them to get back on their feet. What needs to be remembered is that every bankruptcy action is different and there are various forms of bankruptcy chapters that can be utilized for a business bankruptcy.
Chapter 7 can be used in some circumstances and so can Chapter 13 bankruptcy. The first thing that you should do is seek out the services of a qualified and experienced Houston bankruptcy lawyer to advise you on which form of bankruptcy would best suit your needs. You will also need to be able to qualify and there is a chance of that the Chapter 13 bankruptcy which is more of a reorganization of your debts would be the best solution for you.
Quite often when a business runs into financial difficulty they are receiving a great deal of creditor pressure and they are not given any time to be able to get their business back on track. A Chapter 13 bankruptcy allows for a proper repayment plan to be set up, and once it is done then all the parties concerned in the bankruptcy must adhere to this plan. This allows a business to make their payments as instructed or as approved while they are trying to get their business financially stable and grounded once again.
What has to be remembered is that a Chapter 13 bankruptcy can only be utilized by those that are able to file for the bankruptcy in their own name. This means that a corporation or limited liability company cannot utilize this form of bankruptcy relief. For corporations and LLCs there are other forms of bankruptcy that they can rely on. This form of law can be quite complex and this is why it is important to rely on professionals to assist you.