Restructuring Your Business With Chapter 11 Bankruptcy
When debts threaten to derail your business, Chapter 11 may be a way to salvage it. Geared toward businesses, this type of bankruptcy could allow you to reorganize and restructure debts in a way that allows your business to continue operating. You can address debts such as commercial leases, business loans and contracts. Chapter 11 can lay the foundation for your business to be more profitable moving forward.
Extensive Experience In Protecting Local Businesses
We’ve been practicing bankruptcy law for more than 25 years, and our founding attorney, Vicky Fealy, maintains Texas board certification* in this area. Our firm’s belief is to not only be their legal representation but also educate our clients so they can make informed decisions about their debts. The Fealy Law Firm, PC, will lay out all your legal options and help you choose the course of action that makes the most sense for your situation.
As a client, you will not be passed off from one person to another. Instead, you will work personally with lead attorney Ms. Fealy. She will be your advocate and will guide you through every step of the process. Let us help you determine if Chapter 11 or another form of bankruptcy or debt relief is right for you.
Our firm is based in Houston, but we help clients throughout the surrounding counties. We’re committed to helping other local businesses restructure and clear themselves of debt in order to maintain the vibrant working community in our area.
Answers To Frequently Asked Questions About Chapter 11 Bankruptcy
Considering filing for Chapter 11? The following questions and answers will hopefully make it easier to decide.
Are some businesses better suited to Chapter 11 than others?
Yes, they are. Businesses can get into financial trouble for a wide variety of reasons. Chapter 11 is most appropriate for businesses that have a sound structure and a good business model but have fallen on hard times due to factors beyond their control (such as a recession or a market disruption). Filing for Chapter 11 can give the business enough time and relief from creditor collection activity to regain stability and work toward profitability once more.
By contrast, businesses that have a flawed business model or were never able to be successful would not be good candidates for Chapter 11 reorganization. In these cases, a business can pursue a Chapter 7 bankruptcy.
How long does a Chapter 11 take? Is it the same timeline as a Chapter 13?
Chapter 11 and Chapter 13 are similar in the sense that both are focused on reorganizing and repaying debt. With Chapter 13, the repayment period is normally three to five years. In many cases, a business filing Chapter 11 might have the same or a similar timeline. Technically, however, there isn’t a specified time limit for a Chapter 11.
Does a Chapter 11 bankruptcy also trigger the protections of an automatic stay?
Yes, it does. Upon filing, creditors of the business must suspend any collection actions, foreclosure actions or civil litigation. Creditors are also prohibited from contacting the business or business owner(s).
As with any automatic stay, these protections do not remain in place permanently. Business owners will need to discuss the details of the stay with their attorney and plan accordingly.
A Debt Relief Agency On Which You Can Count
If you or your business in Texas needs the assistance of an experienced bankruptcy attorney for handling unmanageable debts, contact The Fealy Law Firm, PC, today by calling 713-568-4491. You can also complete our online contact form to schedule your free consultation. Se habla español.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.