Chapter 11 Bankruptcy Attorney in Waco, TX
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”).
Many of our small business owners actually reorganize by filing a Chapter 7 case. The Chapter 7 case terminates the business, but a new debt free business is formed and the individuals start their new business free of the debt from the old, failed business. If a Chapter 11 case is filed, the Debtor files the bankruptcy case and proposes a Chapter 11 plan to repay the creditors at least a portion of the debt owed. The creditors vote to either accept or reject the proposed repayment plan. If the creditors vote against the plan, the Bankruptcy Court can nevertheless confirm the plan if it does not discriminate unfairly and is fair and equitable.
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 to be filed in the case which includes a schedule of assets and liabilities and a Chapter 11 plan.
This Chapter 11 plan along with a disclosure statement, which discloses your assets and liabilities and your proposed restructuring, will be filed with the bankruptcy court and voted on by your creditors. 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 our Chapter 11 Bankruptcy Attorney to discuss the financial needs of your business. I’ve been practicing exclusively bankruptcy law in Texas for thirty 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!