Chapter 11 Bankruptcy
As a Waco bankruptcy lawyer and a Killeen bankruptcy lawyer, I don’t just see individuals struggling to make ends meet these days – I see many businesses dealing with financial hardship as well. If you are a business owner dealing with tough financial times, you’re probably wondering how you’ll ever get your head above water.
For businesses in central Texas, Chapter 11 bankruptcy is often a very powerful solution. It allows you to continue operating your business, while satisfying your debts in a way you can live with. After all, you work hard to run your company – shouldn’t you be able to concentrate on your business instead of dealing with creditor harassment?
What is Chapter 11 Bankruptcy?
At its most basic level, Chapter 11 bankruptcy provides a means for businesses to reorganize, and to implement a plan to pay creditors while still conducting business operations. A Chapter 11 petition can be filed by the business owners (a “voluntary petition”) or by creditors that meet certain criteria (an “involuntary petition”).
Unlike Chapter 7 bankruptcy, a Chapter 11 filing does not relieve the business of its debts. Instead, it allows business owners and creditors to reach an agreement about how the debt can best be paid.
This type of bankruptcy filing works best for businesses that have significant assets and cash flow, but also have substantial debts.
How Does Chapter 11 Bankruptcy Work?
After meeting with you to discuss your business’s financial situation, I will file a petition with the bankruptcy court. We will also work together to prepare other documents for filing, including:
- A schedule of assets and liabilities
- A schedule of current income and expenditures
- A statement of financial affairs
- A schedule of pending contracts and active leases
You’ll also work with me to develop a written reorganization plan. This plan, along with a statement disclosing your assets and liabilities, will be filed and reviewed by your creditors. If your plan proposed that some of your creditors will receive less than you owe, the creditors will vote on whether to approve the plan.
Once the plan is approved, you’ll have the peace of mind of knowing you can run your business without worrying about your creditors!
Call me to discuss the financial needs of your business. I’ve been a Waco bankruptcy lawyer and a Killeen bankruptcy lawyer for many years, and I have the experience to help you choose the solution that’s best for you and your business. If a Chapter 11 bankruptcy meets your company’s needs, I’ll make every effort to make the process as simple and stress-free as possible for you!