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Chapter 11 Bankruptcy: An Option for Financially Burdened Businesses

The U.S. market is only just beginning to recover from the downturn and instability it experienced in the last recent years. Even then, dozens of businesses across America are still trapped in the shadow of this downturn and are continuing to struggle with significant financial burden. Plenty of business owners face the threat of having to close their doors. Fortunately, they might be able to turn their fate and achieve the financial relief they need by petitioning for a Chapter 11 bankruptcy.

As many just about any Killeen bankruptcy lawyer will be aware of,businesses struggling to pay their debts can seek out financial relief through Chapter 11 bankruptcy. As mandated in the U.S. Bankruptcy Code, a Chapter 11 petition can grant a business with a reorganization plan that will enable them to repay substantial debt over a specific period of time. Best of all, a Chapter 11 can allow a business to continue operations and keep earning profits even as they slowly pay off their debt. Sometimes, a court may also urge a business to have their assets and properties liquidated to cover their payments. Sadly, a Dallas bankruptcy lawyer will usually have to break the bad news that such an action might require a business to downsize significantly. However, this will ultimately keep their doors open for continued operations.

As pointed out by the website of Gagnon, Peacock & Vereeke, P.C., pursing a Chapter 11 bankruptcy can provide a business with the opportunity to keep their doors open as they pay off their debts. However, it should be noted that going through the petition process can be extremely tedious and time-consuming. It can also be significantly more expensive than other bankruptcy options available in America. The U.S. federal courts require Chapter 11 petitioners to pay a substantial fee when filing their cases, plus an additional administrative fee of around $500. Despite these concerns, filing for a Chapter 11 bankruptcy can be beneficial in the long run. Businesses in Texas should consider discussing with a legal professional in their area.