Houston Chapter 11 Bankruptcy
Chapter 11 for business reorganization
Chapter 11 bankruptcies help corporations and partnerships reorganize to pay creditors over time while continuing business operations. This chapter of the U.S. Bankruptcy Code was established for businesses in dire financial straits but who believe they can remain viable if their debts can be lessened or paid over time.
In some instances, smaller businesses and individuals might find Chapter 11 a viable option, although they should seek the advice of a qualified lawyer among Chapter 11 bankruptcy attorneys in Houston to determine whether this is their best course of action.
How to file for Chapter 11 bankruptcy in Houston
The process begins with filing a petition in the U.S. District & Bankruptcy Courts for the Southern District of Texas in Houston. The petition can be filed by either the debtor or by the debtor’s creditors. In addition, the debtor also has to file the following:
- Schedules of assets and liabilities
- A schedule of current income and expenditures
- A schedule of contracts and unexpired leases
- A statement of financial affairs
The bankruptcy court appoints a U.S. trustee—an individual or an institution such as a bank—who appoints one or more committees to represent creditors and any stockholders. Together, these committees work with the debtor company to reorganize for debt relief. They develop a plan for the bankruptcy court’s approval.
The court authenticates the plan or can decide to reject it. Even if creditors vote to disallow the plan, the court can choose to ignore the vote.
While filing Chapter 11 bankruptcy results in reorganization, it can also result in liquidation and the monies gained through the sale of the company’s assets reimburse the company’s creditors.
Legal counsel for filing Chapter 11
Experienced Chapter 11 bankruptcy lawyers in Houston can guide commercial enterprises through the process and affirm that Chapter 11 is the right choice to suit their particular circumstances. These attorneys can also help clients gather their financial information for inclusion into the required schedules to be filed along with petitions for bankruptcy.
Call us at 1-866-641-0123 or contact us online to schedule your free consultation.
