What is Chapter 11 Houston?
Chapter 11 Houston bankruptcy is designed to preserve a viable business that might otherwise go out of business. By viable, I mean simply that the business can recover from a temporary setback if given time while protected from its creditors. Chapter 11 bankruptcy is a form of bankruptcy filed by corporations and partnerships that are in trouble financially or for individuals with more than $1.1 million in secured debt.
Under Chapter 11 Houston bankruptcy the business continues to operate while under the protection of the bankruptcy court, while working out a plan of reorganization. The different types of debts owed by the company are divided into different classes. The plan of reorganization outlines the manner in which each class of debt are to be treated. The creditors are presented with the plan and vote for approval. The court must also approve the plan. In order to file a Chapter 11 Houston bankruptcy, the company needs to have sufficient ability to pay attorneys fees and CPA fees up front, as well as filing fees.
For businesses that have this ability, a Chapter 11 bankruptcy can provide the time and protection to reorganize and for the business to come out of bankruptcy as a strong, going concern. During times of economic downturn like all have experienced recently, Chapter 11 Houston bankruptcy can be the difference between owning your business years from now or closing for good.
If you are considering bankruptcy, and want to find out about Chapter 11 Houston, call us today.
