May 17, 2019 By:
A Chapter 7 petition will allow you to immediately discharge certain debts, but at a cost. To rid yourself and your company of those debts, you must agree to sell all assets not determined to be exempt under state or federal laws. If your business is one that does not require any meaningful assets—you have no inventory or equipment, no tools or machinery—then you may want to simply get rid of your debts and start over again. In most instances, though, when you want to continue with business operations, you want to seek protection under Chapter 11.
In a Chapter 11 filing, you and your attorney work with your creditors, putting together a plan that allows you to keep all your assets, and negotiate new payment plans or terms. Typically, the reorganization plan will be in place for three to five years. The reorganization plan must be submitted to and approved by your creditors. If it is, you won’t have to worry about attempt to collect on the debt, as long as you make the agreed upon payments. At the end of the bankruptcy period, most amounts remaining due to creditors will be discharged.
I provide a free initial consultation to anyone with questions or concerns regarding a bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.