At Leinart Law Firm, we offer more than just a “one size fits all” approach to business bankruptcy. We understand the stress and worry of a business owner when profits start to dip or when a changing economic climate may mean their business model is no longer viable. If you’re struggling with business debt but aren’t quite ready to close shop, business bankruptcy may be an option to give you some breathing room to reorganize your debts and find relief.
A Cedar Hill, TX, business bankruptcy lawyer can help you learn more about your options for getting out of debt, including filing Chapter 11 business bankruptcy and putting legal protections in place to shield your personal assets from seizure in the business bankruptcy process. Contact us today for a professional evaluation of your business finances and personalized advice.
What Does A Cedar Hill Business Bankruptcy Lawyer Do?
Texas offers several options for business owners to file for bankruptcy:
- Chapter 7 Business Bankruptcy
- Chapter 11 Business Bankruptcy
- Chapter 11 Subchapter 5 Small Business Bankruptcy
Each has advantages and disadvantages; it’s your attorney’s job to review each option (and Its benefits and drawbacks) with you and recommend the best legal steps. We take into consideration your personal and professional goals when we provide advice.
Is Business Bankruptcy Right For My Company?
If you’re overwhelmed with debt and your business income doesn’t seem to be keeping up with your ability to repay loans, then business bankruptcy may be the only way to save your company.
Is it right for you? Maybe, if you:
- Are working 60+ hours a week yet still can’t pay yourself a salary
- Are behind on your office or shop rent, and your commercial landlord is threatening to end your lease
- Haven’t been able to pay your employees or are behind on paying employee withholding (941) taxes
- Are behind with vendor payments or payments on secured loans
Business bankruptcy can give you time and space to restructure your corporate arrangement and consolidate your debts into more manageable payments.
However, some people may choose to close their businesses completely, filing Chapter 7 bankruptcy and liquidating all the business assets to repay the debts. We help you determine which option is best for you, Chapter 11 or Chapter 7, then draft and file all the necessary legal documents and motions to advance your claim.
Professional Legal Advice For Struggling Businesses
If you’re concerned that your business is underwater or your revenue doesn’t seem enough to cover your debts, then business bankruptcy may be the best option for you. We can help. The legal team at Leinart Law Firm evaluates your business structure and debts, then works with you to develop a realistic plan for repayment. If you wish to preserve your business, we can help with Chapter 11 business bankruptcy; if you’re ready to close its doors and move on, then we can help you with Chapter 7. Contact us today for a personalized consultation with an experienced Cedar Hill business bankruptcy lawyer.
Business Bankruptcy Options
When a business is facing financial hardship, filing for bankruptcy can provide a path forward. However, choosing the right type of bankruptcy is essential for protecting assets and working toward a more stable financial future. There are different bankruptcy options available for businesses, and it’s important to understand the advantages and limitations of each. As a Cedar Hill business bankruptcy lawyer firm, we help clients determine the best course of action based on their unique circumstances.
Chapter 7 Bankruptcy For Businesses
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is often used when a business is no longer able to stay open and pay its debts. In this type of bankruptcy, the company’s assets are sold off to pay creditors. After the liquidation process is complete, the remaining debts are discharged, and the business will typically close. Chapter 7 is often the best option for companies that do not see a viable path forward or that want to wind down operations in an orderly way.
One key benefit of Chapter 7 is that it provides a clean break from overwhelming debt. However, it also means that the business will cease operations and its assets will be liquidated. For many business owners in Cedar Hill who are looking to close their business while addressing their debts, Chapter 7 can be an appropriate solution. Working with a Cedar Hill business bankruptcy lawyer can help ensure that the process is handled smoothly and in accordance with legal requirements.
Chapter 11 Bankruptcy For Businesses
Chapter 11 bankruptcy is different from Chapter 7 in that it allows a business to continue operating while restructuring its debts. This option is designed for companies that want to stay open and work through financial challenges. In Chapter 11, a business proposes a reorganization plan to the court, which outlines how it will pay back its creditors over time while maintaining business operations. This plan must be approved by the court and agreed upon by creditors.
One of the major benefits of Chapter 11 is that it gives businesses in Cedar Hill the chance to keep their doors open while addressing debt issues. By restructuring payments, companies can reduce their debt load and create a more manageable financial structure moving forward. This option is typically best for businesses that have a chance of becoming profitable again with the right adjustments in place.
While Chapter 11 can be a more complicated process, it’s often worth it for businesses that want to stay operational and eventually return to profitability. A business bankruptcy lawyer will guide you through this process, helping to develop a reorganization plan that works for both you and your creditors.
Chapter 13 Bankruptcy For Sole Proprietors
For sole proprietors, Chapter 13 bankruptcy is another option to consider. Unlike Chapter 7, this type of bankruptcy allows sole proprietors to keep their assets while creating a payment plan to settle their debts. Over a period of three to five years, the business owner can repay creditors while continuing to operate their business.
Chapter 13 can be especially useful for small business owners in Cedar Hill who want to protect their personal and business assets. By working with a Cedar Hill business bankruptcy lawyer, you can develop a repayment plan that fits within your budget and helps you regain financial stability. This type of bankruptcy is not available to corporations or partnerships, making it a more specialized option for sole proprietors.
Our Firm Can Guide You
Choosing the right business bankruptcy option is crucial for companies facing financial difficulties. Whether it’s closing the business under Chapter 7, restructuring under Chapter 11, or seeking repayment solutions through Chapter 13, each option has its own benefits. At Leinart Law Firm, we are here to help businesses in Cedar Hill evaluate their options and make informed decisions. If you’re considering bankruptcy for your business, contact us today to discuss how we can help you find the best path forward.
