There are times where businesses can run into great financial difficulties and have to consider bankruptcy. In these cases it is a Chapter 11 bankruptcy that has to be considered. The Chapter 7 and it Chapter 13 versions of bankruptcy are reserved for those that are in a personal need of debt relief.
There are as many rules and regulations when it comes to a Chapter 11 bankruptcy as there is with the other forms. If an individual wants to file for a Chapter 11 bankruptcy but they have had a prior bankruptcy dismissed in the previous 180 days they will not be eligible.
It can’t be confusing for you to know whether you should be filing for a personal bankruptcy or a Chapter 11. There is specific criteria that you’re going to have to meet no matter which Dallas bankruptcy you are going for, and this is why it is important to rely on sound legal guidance which you would receive from a qualified bankruptcy attorney.
You may have a business and be a sole proprietor which may mean that you would not be eligible for the Chapter 11, then it you may be in a business a partnership which is going to make the bankruptcy a little more confusing and complex.
When you are going for a Chapter 11 bankruptcy you are going to find that it is a reorganization type of bankruptcy. It can be applicable to a corporation, a sole proprietorship, or partnership. What makes it even more complex is that as a Corporation it is considered a separate entity from you as being the owner. Which means, that that your personal assets are not likely to be considered. However, if you are in a sole proprietorship then it is a totally different scenario and you do not have a separate identity from your business. So this in itself can now affect your personal financial circumstances.