Chapter 11 Bankruptcy Helps Bethlehem Businesses
You may consider a Chapter 11 if your corporation, partnership or sole proprietorship is struggling with substantial debt, you may consider a bankruptcy to keep your business viable while you develop new business strategies for future growth.
What is a Corporate Reorganization?
Frequently referred to as “reorganization bankruptcy,” Chapter 11 bankruptcy permits businesses to continue operating while they pay creditors under a court-ordered payment plan (Somewhat like a Chapter 13 bankruptcy for individuals). Once your business has filed for bankruptcy, creditors must immediately stop collections efforts, including harassing letters and phone calls.
Protecting Personal Assets
Your personal assess may be at risk during a Chapter 11 bankruptcy since an owner of a sole proprietorship does not have an identity that is separate from the business, which means the bankruptcy court does not distinguish between the business’s assets and the owner’s personal assets. Bankruptcy Houston has years of experience, and can develop successful strategies to protect your personal assets from your business’s creditors, while putting your business in the best-possible position to succeed going forward.
Corporate and Partnership Bankruptcy
With a corporation that files a Chapter 11 bankruptcy, the owners do not risk their individual assets, except for their investments in the corporation. However, partners are normally held separate from their partnership, and in some cases a partner’s personal assets may also be at risk. Bethlehem Bankruptcy considers the business’s best interests and those of corporate stockholders or partners of the business.
Bankruptcy Plan and Debt Discharge
During a Chapter 11 bankruptcy, the confirmation of the corporate reorganization plan discharges your business debts that were acquired prior to the plan’s confirmation. Your business is bound by the terms of the corporate reorganization plan, which forms new contractual terms that replace all contracts entered into before your Chapter 11 bankruptcy discharge.
Contact Bethlehem Bankruptcy Lawyer Today
Bethlehem Bankruptcy has the experience you and your business needs in helping with your Chapter 11 bankruptcy. Contact Bethlehem Bankruptcy Lawyer today for a free consultation at 800-123-1234.