Chapter 7 Bankruptcy for Businesses
Houston Business Chapter 7 Bankruptcy Attorney
For businesses, Chapter 7 bankruptcy is used as a way to wind down a business that does not have sufficient prospects to reorganize under a Chapter 11 bankruptcy. Chapter 7 is also called liquidation bankruptcy.
I’m Margaret McClure, a lawyer who provides affordable Chapter 7 bankruptcy services to small businesses in the Houston area. After you file a Chapter 7 bankruptcy, the trustee will own your business and all of its assets. The trustee can operate your business as an ongoing concern or sell all of the assets to pay your creditors. If there are no unencumbered assets, the assets will be abandoned to the secured creditors for foreclosure or repossession, and the bankruptcy case will be deemed a “no asset” case, and closed without further administration.
Another option is simply to go out of business and negotiate a settlement with your creditors. In this situation, your lawyer can use the threat of filing a Chapter 7 bankruptcy to persuade uncooperative creditors to accept your offer and write off your debts.
Small-business owners often have personal property that is a part of the business. For example, a vehicle or a commercial building may be titled in your name rather than in the name of your business. In this case, you can protect your property by filing personal Chapter 13 or Chapter 11 bankruptcy in addition to Chapter 7 bankruptcy for your business.
In Texas, all equity that you have in your homestead property is protected from creditors.