Determining Your Options
It’s a documented fact—one third of new businesses don’t make it a full year, half shut their doors within five years and only a third make it 10 years. If your company is struggling to meet its financial obligations, a bankruptcy filing may allow you to get a fresh start. But should you seek to discharge debts in Chapter 7 or reorganized your obligations through Chapter 11?
Protecting Yourself in Chapter 7
A Chapter 7 filing will allow you to permanently rid yourself (and the business) of certain debts, but you may lose some of your assets to the trustee, to be used to pay your creditors. If you don’t see a viable future for your business, Chapter 7 is probably your best option. You can completely shut down the business, liquidate all assets and start over again. Chapter 7 may also be a viable option if you don’t need significant assets to operate.
Chapter 11 Business Bankruptcy
With a Chapter 11 petition, you (and your attorney) work with creditors to negotiate new payment arrangements. Those payment plans must be approved by creditors and the court. They typically call for repayment of some or all of the debt over a 3-to-5 year period. A Chapter 11 brings the protection of the automatic stay, preventing creditors from harassing you or filing legal action to collect a debt. That can give you the necessary time and access to resources to get back on your feet. In many instances, it can give you the breather you need, so that you are able to meet all your obligations when your company finally becomes profitable.
Contact Heath, TX Bankruptcy Attorney Carrie Weir
At the Law Office of Carrie L. Weir, I provide a free initial consultation to anyone with questions or concerns regarding a personal bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 to schedule a private consultation. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.
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