Houston, TX Business Bankruptcy Lawyer

Attorney Helping Business Owners Navigate Bankruptcy Challenges in Houston, TX

Starting a business is always a risk. Sometimes, that risk pays off enormously. More commonly, the business does not work out. You should not feel bad if your business is not succeeding right away and has acquired a lot of debt. This is a fairly normal part of entrepreneurship. Many very successful businesspeople have had one, two, or more companies they started fail within the first year. Needing to file bankruptcy for your business does not mean that your business idea was not good or that your business plan was not strong. In some cases, filing certain types of bankruptcy can even help you save your business.

The Fealy Law Firm, PC is skilled in working with business owners whose companies are struggling to turn a profit while paying off debt. There are a lot of expenses associated with starting a business that typically lead to debt. You likely needed a bank loan to buy the materials you need to run your business, such as kitchen equipment if you own a restaurant. This means that a lot of businesses start off with significant debt. Attorney Fealy is here to help you choose the right course of action.

Chapter 11 and Subchapter V Bankruptcy for Businesses

The size and complexity of your company will be the main factor in choosing between Chapter 5 (Chapter 11, Subchapter V) and Chapter 11 bankruptcy. Chapter 11 bankruptcy can be an incredibly complex process, as it involves negotiating with your creditors to develop a feasible repayment plan. Normally, Chapter 11 bankruptcy is used by larger corporations. While it can initially be costly, it may save your business money in the long run if you owe a very significant amount. Chapter 11, Subchapter V bankruptcy is meant to be accessible for small businesses. It is slightly less complicated than Chapter 11 and generally easier for those who own small companies with only a few employees.

Both Chapter 5 and Chapter 11 bankruptcy involve a restructuring of your business's debt and operations, allowing you to keep the company alive. You will be able to keep the capital you need to continue normal operations while making payments you can afford. A majority of your profits will be used to pay off the debt for several years of operation. This gives you time to build a stronger business plan, advertise, and grow your company.

Liquidation Bankruptcy for Businesses

If you find that simply walking away from a failing business is probably your best option, liquidation bankruptcy may be for you. While your company's assets will be liquidated, this likely would not be a problem for you, since you are closing your doors anyway. After your company's assets are liquidated, its remaining debt is wiped away. It will almost be as if the business never existed, which may be exactly what you want.

This can provide you with a clean resolution and free you from your business's debts. Having a business not succeed is often just the first step towards becoming successful. You may find that desirable companies are eager to hire you due to your entrepreneurial spirit and ability to be a self-starter. While it may take time before you are able to get another business loan, you can take the lessons you have learned running a business and create a more powerful plan in the future.

Contact a Houston Business Bankruptcy Lawyer

The Fealy Law Firm, PC is committed to supporting business owners who are struggling with debt. Attorney Fealy can help you carefully assess your business's assets and debts to determine what type of bankruptcy would offer you the most benefit. Contact us at 713-526-5220 for a free consultation with a qualified attorney.