Business Chapter 7 Bankruptcy
What is a business Chapter 7 bankruptcy in Texas?
A business Chapter 7 is a liquidation. This is a bankruptcy for a business entity (such as a partnership, corporation [‘Inc.’], or limited liability corporation [‘LLC’]). The business entity files for Chapter 7 bankruptcy, not the business owners.
Can I still run my business if it files a business Chapter 7 bankruptcy?
No, a business filing a Chapter 7 bankruptcy will not continue to operate. BUT – if you are self-employed, a sole proprietor, or doing business as (‘D/B/A’) you may benefit from a personal bankruptcy (instead of a business bankruptcy) and may be able to continue your business.
What is the benefit of a business Chapter 7 bankruptcy ?
A business Chapter 7 allows for orderly liquidation of your assets. This will prevent creditors (employees, suppliers, banks, etc.) from arguing that the business’ assets were sold in an unfair manner. The Chapter 7 Trustee is responsible for collecting and selling all of the business’ assets (including cash and bank accounts) and distributing the money to the business’ creditors. If your business is struggling with debt, call me today to schedule a consultation to review the business’ options.
Does my business qualify to file Chapter 7 bankruptcy ?
The first fact we look at to determine if a business can file Chapter 7 bankruptcy in Texas If your business is located in Texas.
The second fact we look at is whether the business has assets to liquidate to determine if the business may qualify to file a Chapter 7 business bankruptcy. There are legal and practical reasons for this which I can explain when we speak. After an in person consultation you will learn whether your business would benefit from filing a Chapter 7 bankruptcy or not.