The Vida Law Firm, PLLC assists businesses throughout the metropolitan Fort Worth area needing legal assistance with Chapter 11 bankruptcies. If your business is struggling to manage debt, you may want to consider filing for Chapter 11 in Fort Worth.
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.
For more information about this type of bankruptcy, please see our Chapter 11 frequently asked questions page.
Concerned about the cost and size of a traditional Chapter 11? Good news for you. In 2020, a new reorganization plan is available for small business owners. It is called a “Subchapter V”, which means it is simply a subsection of the current Chapter 11.
Until March 27, 2021 any person with primarily business debts (more than 50% of their debts) and total debts of less than $7,500,000.00 can receive the benefits of bankruptcy reorganization through Subchapter V to reorganize their financial affairs. After, March 27, 2021, the debt limit will be lowered to $2,725,625.
What advantages does Subchapter V have over regular Chapter 11 bankruptcy and regular small business bankruptcy?
Behrooz Vida is currently a Trustee for the new Subchapter V cases being filed in Dallas/Fort Worth area, and is ready to help you navigate your own small business bankruptcy.
Contact us at 817-358-9977 for an appointment to discuss your bankruptcy options for saving your business.
Once you file the bankruptcy petition, an automatic stay takes effect and your creditors must cease all collection activity. Your attorney 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. An experienced bankruptcy attorney can negotiate with your creditors to put together a plan that will work for your business.
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. A knowledgeable attorney can examine your situation and advise you as to whether this option may be right for your business.