If your business is struggling to manage debt, you may want to consider filing for Chapter 11. Typically called a “reorganization” bankruptcy, Fort Worth Chapter 11 allows a business to continue operating while restructuring finances so as to better manage debt. Corporations, sole proprietorships, partnerships, limited liability companies (LLCs), and other types of businesses are all eligible to file under Chapter 11. Although less common, in some instances individuals whose debts are too large to qualify under Chapter 13 can also file under Chapter 11.
Once you file the bankruptcy petition, an automatic stay takes effect and your creditors must cease all collection activity. Attorney Andrew Nichols will then negotiate with your creditors and the bankruptcy court to create a repayment plan; generally, the plan will demand that you pay secured creditors in full and unsecured creditors a negotiated amount.
All of your secured creditors, and a majority of the creditors holding the bulk of your unsecured debt, must approve the plan. Attorney Andrew Nichols can negotiate with your creditors to put together a plan that will work for your business.
CHAPTER 11 FOR SMALL BUSINESSES
If your business has total unsecured and secured debts under $2,190,000 and the trustee has not appointed a creditors’ committee, your business may be eligible for a small business or “fast track” bankruptcy. Attorney Andrew Nichols can examine your situation and advise you as to whether this option may be right for your business.