Corpus Christi Business Bankruptcy Lawyer

Chapter 11 bankruptcy helps Texans protect protect their businesses

Chapter 11 bankruptcy applies to businesses and allows them to restructure debt payments and keep assets. Companies usually choose to file Chapter 11 because their long-term revenues will be higher than the liquidation value of their assets. Creditors can get more money back if they allow the debtor business to reorganize and adopt a Corpus Christi business work out payment plan.

In Chapter 11 bankruptcy, a commercial enterprise pays creditors according to a court-approved reorganization plan. This allows a business the opportunity to get back on its feet and move forward to a path to profitability. Bankruptcy court approves or rejects the corporate plan. A Corpus Christi business bankruptcy lawyer will be able to advise you as to whether Chapter 11 business bankruptcy in Corpus Christi is right for you and your business.

Filing a petition

A Chapter 11 case begins with filing a petition with bankruptcy court. A company that declares Chapter 11 is required to disclose all of its assets and make a list of all the debts it needs protection from.

While under Chapter 11, a company can only make the usual sales and purchases that are part of its standard business operations. In all Chapter 11 proceedings, a creditors' committee represents the majority of the unsecured creditors. This committee negotiates the best possible payment options for them.

Voiding contracts

One of the important provisions of Chapter 11 allows a company to void many of its contracts, including union contracts, contracts with suppliers, and real estate leases. The debtor can also avoid certain payments or purchases that happened in the period prior to the bankruptcy.

The skilled legal guidance you need

A Corpus Christi business bankruptcy lawyer at the Cavada Law Office can answer all your questions about Corpus Christi business bankruptcy. The firm has years of experience representing corporations and individuals in all types of Texas bankruptcy proceedings. To schedule a free consultation to discuss your case with us, contact us today.