Benefits of Chapter 11
Chapter 11 bankruptcies are special filings which are designed to be used by businesses rather than individuals and typically serve to allow a business to remain in operation while going through significant restructuring in order to pay off debts and return to profitability. In Chapter 11 bankruptcy, the company itself is used as collateral and creditors will be granted direct access to a percentage of the restructured business’s profits while allowing the owners of the business to retain control over their business affairs.
If your business is currently weighed down by unsustainable debt and facing default, filling for Chapter 11 may be the solution to your financial troubles. To learn more about how an experienced Katy Chapter 11 bankruptcy attorney can provide you with the guidance and advice necessary to moving through the filing process in an effective and efficient manner, call the Russell Van Beustring P.C., today at 713-973-6650.
Chapter 11 Advantages
In situations where a company is completely unable to make payments to its creditors, the only option may be a liquidation of assets in Chapter 7 bankruptcy. Chapter 11 is a far less severe alternative to liquidation which prevents the company from being dissolved and instead allows it the following benefits:
- Continued operation during bankruptcy proceedings
- Eliminates the need for massive layoffs
- Allows the management of the company a degree of leverage with creditors
- Allows the company to return to normal operation after a successful restructuring
In order to effectively carry out such an overhaul of your company, you should consider speaking with and enlisting the support of a skilled legal team.
At the Russell Van Beustring P.C., our legal professionals are committed to helping those in financial distress to utilize the tools available in the bankruptcy system get back on their feet financially. If your company is facing overwhelming debt and looking for a way out, call an experienced Katy Chapter 11 bankruptcy lawyer today at 713-973-6650.