The Vida Law Firm, PLLC is a knowledgeable source for bankruptcy help in Fort Worth. Bankruptcy law attorneys from our firm are here for you if you are trying to decide whether bankruptcy is right for you.
Chapter 7 bankruptcy, otherwise known as liquidation, is the simplest, fastest form of bankruptcy. It is available to individuals, married couples, corporations, and partnerships.
Federal bankruptcy laws provide for a means test to determine whether you are eligible to file for Chapter 7 bankruptcy. If your income is below the median income for families in your state based on Census Bureau statistics, you are probably eligible for a file banktupcy in Fort Worth under Chapter 7.
Chapter 11 bankruptcy is usually used to reorganize a corporation, sole proprietorship, or partnership business. Under Chapter 11, the debtor proposes a plan of reorganization to keep its business alive and pay back creditors over time. Bankruptcy laws also allow individuals to seek relief in a Chapter 11 filing.
Also known as a reorganization bankruptcy, Chapter 13 is used to set up a plan to repay debts over several years. Individuals and sole proprietors can file a Chapter 13 bankruptcy to pay off debts over five years. Rather than wiping out debts immediately, this option allows you to reorganize them so you have time to pay.
Small businesses in Fort Worth usually file under Chapter 7 when it seems unlikely that the business will recover from its financial difficulties. When the prospects are more hopeful, businesses may file under Chapter 11 so they can reorganize their debts, continue operating, and pay the debts off over time. Chapter 13 is only available to sole proprietors, who must file as individuals to include business debts for which they are personally liable. The goal of a Chapter 13 filing is an approved repayment plan for the sole proprietorship.