Chapter 11 business bankruptcy is a reorganization plan for your business. It provides for the restructuring of debts and the continued operation of the business. For this reason, it is the most commonly filed type of bankruptcy for corporations and larger businesses. Where a sole proprietorship tends to be an extension of the owner’s skill set, tied to the owner’s assets and subject to the liquidation procedures of Chapter 7 business bankruptcy, a corporation is a more complex beast, needing the special protections of Chapter 11.
Is Chapter 11 Right for Your Dallas Bankruptcy?
Understanding some details about Chapter 11 may help you decide if it is the right decision for your Dallas bankruptcy. Under Chapter 11, your company may continue to do business as usual, and the company’s assets are not subject to liquidation – a big plus for most. Many debts are dischargeable under the filing, with notable exceptions being tax debt and child support or alimony payments. The reorganization of debts takes place under a repayment plan with a term of three to five years, and must be approved before moving forward with your Dallas bankruptcy.
Chapter 11 business bankruptcy could be the right solution for your business if you are faced with mounting debt and you have already tried renegotiating with creditors. The asset protection and debt reorganization plans can be powerful tools in your Dallas bankruptcy, and can help you get free from your debt burdens.
Business bankruptcy is not something to be taken lightly, but neither is it the end of the road for your corporation. Consult a bankruptcy lawyer to determine the right move for your business and finances.