Corpus Christi Chapter 11 Bankruptcy Lawyers
Chapter 11 Bankruptcy in Corpus Christi
Chapter 11 bankruptcy in Corpus Christi is a form of bankruptcy that allows businesses to restructure debt payments and keep assets. In contrast, Chapter 7 bankruptcy governs the process of a liquidation bankruptcy of businesses or individuals. A third type of bankruptcy, Chapter 13, is usually filed by individuals who want to pay off their debts over a period of three to five years.
The idea behind a Corpus Christi Chapter 11 bankruptcy is that the value of a reorganized business will be substantially larger than the value of the assets of the business were they to be sold individually. A business under the protection of Corpus Christi Chapter 11 can cancel some of its debts, and can also transfer some or all of the newly reorganized company to creditors whose debts were cancelled. Jobs may be saved and the remaining creditors may have smaller losses than if the company is dismantled or liquidated.
These businesses may file a Chapter 11 in Corpus Christi:
- Corporations
- Partnerships
- Sole proprietorships
The party that files for chapter 11 bankruptcy is called the debtor in possession. This means that the business keeps possession of the bankruptcy assets while going through the process of reorganization.
During a Chapter 11 bankruptcy proceeding, the owner of the business remains in possession until one of the following happens:
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A major benefit of a Chapter 11 bankruptcy is that a debtor is allowed to keep all or a portion of its assets in Chapter 11. In contrast, under Chapter 7, a debtor can retain only a limited amount of exempt property. Under the US Bankruptcy Code businesses are not allowed to exempt property.
The skilled legal guidance you need
A skilled Corpus Christi Chapter 11 bankruptcy lawyer at the Cavada Law Office can answer all your questions about Chapter 11 in Corpus Christi. 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.
