Chapter 11 Bankruptcy for Small Businesses
Debt Reorganization for Small Businesses
Any business with debts below $2,490,495 can qualify for a short cycle Chapter 11 proceeding with restructuring, asset sales, or both, as tools to return your business to solvency.
Chapter 11 bankruptcy is the preferred alternative for any business with trade debt and secured debt where balance sheet rehabilitation and return to profitability are the main objectives. Small business cases can also be utilized, as with any Chapter 11 bankruptcy filing, to facilitate and enhance the sale of all, or a part, of the assets of a troubled business.
Any business, whether solvent or not, that needs time and space in which to implement changes, or needs to restructure debt and retain assets, can utilize Chapter 11. In fact, the number one driving force behind the liquidation of businesses is the failure of owners to realize that Chapter 11 should be among the first alternatives considered and not the last resort. Effective use of Chapter 11 can provide a breathing space in which to handle both financial and operational restructuring. Or, Chapter 11 can be used to enhance the earnings before interest, taxes, depreciation, and amortization (EBITDA) of a business and thereby maximize the possible return to creditors and, hopefully, investors, if the business is no longer viable and the assets need to be returned to productive use in other hands.
In any case, the key to a successful reorganization and recovery is early consultation and planning. We can help you rewrite debt, break leases, discard unprofitable contracts, manage liabilities and restructure your cash flows. We can help give your small business the relief from pressure that you need in order to focus and apply yourself to profit instead of constantly responding to problems.
Contact an Attorney in The Woodlands: Business Restructuring Through Bankruptcy
All Bankruptcy litigation referred to the firm will require a deposit of substantial retainer and/or third party guarantee. There will be a $400.00 fee for an initial conference which is payable at the time of booking the appointment.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.