There are two types of business bankruptcy, a Chapter 7 and Chapter 11 bankruptcy. A business Chapter 7 is a liquidation bankruptcy. Chapter 7 bankruptcy resolves debts of businesses that will be no longer in operation. A Chapter 11 business bankruptcy is a reorganization bankruptcy. Chapter 11 bankruptcy resolves debts of businesses continuing operations by developing a payment plan.
The most important aspect of Chapter 11 bankruptcy is that it allows a business to continue to operate. A business can keep earning money and repay its debts over time. Debt collections will stop as long as the payment plan is in effect.
Chapter 11 bankruptcy offers many advantages to a business. It saves job by keeping the business open. It also protects many of the business’s assets. Under Chapter 11, the business can continue to operate until it regains financial stability. If your business is evaluating Houston debt relief options, Chapter 11 bankruptcy may be a good alternative to consider.
Chapter 11 Bankruptcy For Businesses
Chapter 11 bankruptcy can be the most difficult type of bankruptcy. It requires the help of an experienced Houston bankruptcy attorney. A person can represent themselves in a case, but a business bankruptcy requires a legal entity in court. An experienced attorney can be the difference in successfully repaying debt or having the business fail. You will need advice on the topics of creditors, filing documents, repossession or foreclosure, and the repayment plan. Contact a board certified Houston bankruptcy lawyer for more information on Chapter 11.
Chapter 11 Bankruptcy For Individuals
There are debt limitations for people seeking Chapter 13 bankruptcy. Anyone who does not qualify for a Chapter 13 may be able to resolve debts in Chapter 11. Chapter 11 gives individuals an opportunity to reorganize their debts and get them back on track financially.
How Can A Chapter 11 Bankruptcy Help?
Similar to a Chapter 13 bankruptcy, a Chapter 11 bankruptcy allows businesses to restructure their debts. The business keeps control over the business operations and assets. Businesses in a Texas Chapter 11 bankruptcy will be able to halt collection activities and develop an affordable repayment plan.
Contact Our Texas Chapter 11 Bankruptcy Lawyers
Baker & Associates is a team of bankruptcy attorneys experienced in both consumer and business bankruptcy. Having successfully managed hundreds of business bankruptcy cases, we can help you successfully navigate the Chapter 11 process. Operator and founder of Baker & Associates, Reese Baker, is experienced in getting both consumers and businesses back on their feet.