Business Bankruptcy

Helping small and mid-sized businesses in Texas restructure, reduce, and reorganize debt since 2009. We develop bankruptcy solutions that fit your unique business needs.

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BUSINESS BANKRUPTCY

Seeking The Right Solution for Your Business

With experience working in business bankruptcy since 2009, The Lane Law Firm's team of bankruptcy attorneys offers more than just a "one-size-fits-all" bankruptcy process. Our team works with you to look at all of your options — both bankruptcy and non-bankruptcy —  and develop a solution that is specific to your type of business, your personal liability, and the type of creditors you're dealing with. 

If bankruptcy is the right option for your business our team can walk you through either:

  • Chapter 11 Business Bankruptcy
  • Chapter 7 Business Bankruptcy
  • Subchapter 5 Small Business Bankruptcy

Each type of business bankruptcy has unique advantages, but the option you choose depends on your personal goals, your business goals, and your business's unique situation. 

When your business is overwhelmed with debt and can't keep up with payments, business bankruptcy may seem like the only option. But business bankruptcy is much more complex than personal bankruptcy. A one-size-fits-all approach will not work. You need personalized, experienced business bankruptcy representation. That's where we come in.

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I hired The Lane Law Firm to deal with my bankruptcy. They were very helpful and professional and returned phone calls in a timely manner. I had no issues with the law firm and would recommend them.

- Austin R

BUSINESS BANKRUPTCY

Chapter 11 Bankruptcy

What is a Chapter 11 Bankruptcy?

A Chapter 11 bankruptcy allows a business to restructure debt while keeping business assets and income untouched. Also known as the "reorganization" bankruptcy, Chapter 11 makes it possible for your company to remain in business while working out payment arrangements with creditors. There are no debt limits, and a trustee is generally not appointed to run your business or handle your cash, though one can be appointed if needed.

Advantages of a Chapter 11 Bankruptcy

A Chapter 11 bankruptcy provides flexibility on how your business manages bankruptcy, and what you accomplish with the process. Advantages include:

  • Breathing room. Once you file, Chapter 11 bankruptcy gives your business a few months to develop a plan for debt reorganization. This can help you think strategically about how you will get your business back on its feet.
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  • Manageable repayment options. In a Chapter 11 bankruptcy, you are able to file a plan for debt reorganization that makes sense for your business. Once that plan is approved by the court, you are able to begin paying down those newly reorganized debts.
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  • Your business remains in operation. Unlike any other bankruptcy chapter, Chapter 11 allows your business to stay open and in operation while you work through the bankruptcy process.
When is a Chapter 11 Bankruptcy the best choice?
A Chapter 11 Bankruptcy is the best choice for businesses that need to:
  • Eliminate or minimize unsecured debt
  • Prioritize secured creditors
  • Buy time to reorganize operations to become profitable
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Subchapter 5 Small Business Bankruptcy

Subchapter 5 small business bankruptcy is a type of Chapter 11 bankruptcy designed to make bankruptcy faster and more accessible for small businesses. Subchapter 5 was added to Chapter 11 Bankruptcy Law in 2019 by the Small Business Reorganization Act in an effort to help small businesses save fees and time. To qualify for Subchapter 5 business bankruptcy, your business must have non-contingent debt of less than $2,725,625.

What is Chapter 5 Bankruptcy?
Learn more

BUSINESS BANKRUPTCY

Chapter 7 Bankruptcy

What is a Chapter 7 Business Bankruptcy?

Different from a Chapter 7 personal bankruptcy, a Chapter 7 business bankruptcy lets owners turn their business over to a trustee for an orderly liquidation. Commonly known as the "liquidation" bankruptcy, a Chapter 7 bankruptcy stops business operations and gives the court power to liquidate its assets and pay what it can to business creditors. When the liquidation is complete and the proceeds have been paid out to creditors, the business won't owe any remaining debts.

Advantages of a Chapter 7 Bankruptcy
  • The business won't owe remaining debts. After bankruptcy, lease obligations, contracts, utility bills, loans, overdue accounts, and other business debts will have been paid to the extent possible. 
  • Creditors will stop harassing business owners. Once the court has paid out creditors using the liquidated assets, creditors will typically choose to write off any remaining debt, rather than trying to collect from a defunct business. 

Business owners could receive leftover assets. While this is true in theory, in practice, there's almost always nothing leftover for owners upon liquidation. It is good to know that Chapter 7 will leave no remaining business debts

When is a Chapter 7 Bankruptcy the best choice?

Chapter 7 business bankruptcy is best for businesses that see no viable financial future for their business. When a business is too far in debt to dig out, there is no need for a restructuring plan. Chapter 7 provides a way for owners to get out of the business — and out from under its debts — with minimal personal damage.

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Personal BANKRUPTCY

Is Business Debt Affecting Your Personal Finances?

If you are personally liable for business debts, you may still be on the hook for those debts, even after your business's liability is resolved in business bankruptcy. If business debt is affecting your personal finances a personal bankruptcy may be an option. While it's never a decision to enter into lightly, The Lane Law Firm's bankruptcy attorneys can carefully assess your situation, and provide you with the solution that protects you and your family.

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Ready For Bankruptcy Representation?

Texas business bankruptcy is a complex legal issue. Get experienced advice from attorneys dedicated to finding a comprehensive solution that meets your needs. Schedule a free consultation with The Lane Law Firm's bankruptcy attorneys today, or leave us a message below.

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