Houston Attorney Handling Chapter 7
Assisting Businesses Undergoing Difficult Financial Challenges
In spite of the hard work people put into their businesses, some companies simply aren’t able to make it. If your business is in trouble and you are in debt and have creditors pursuing you, our business attorney who handles cases regarding Chapter 7 bankruptcy for businesses can help you.
Why Choose Us?
Your Business Matters to Us
Our team will examine your business situation, talk with you about your goals going forward, and advise you about your most favorable legal options for getting out of your stressful debt situation. We offer no cookie-cutter strategies or solutions. Instead, we tailor our work to your specific needs. Houston-area businesses put their faith in Weisblatt Law Firm, and so can you.
Don’t hesitate to reach out to us for assistance. The sooner you get the help of an attorney when your business is failing and you owe money, the better your chances at achieving the most satisfactory resolution for your problem. Call (713) 666-1981 to speak with an experienced attorney at our Houston law firm.
Chapter 7 Bankruptcy for Small Business
According to the U.S. Bureau of Labor Statistics, approximately 20% of small businesses close their doors during their first year. Only about half of small businesses survive beyond five years and many more fail before making it to the 10-year mark. There are numerous reasons businesses don’t make it, from a lack of need in the marketplace for its products or services, to not having enough capital, to coming up against too much competition. But whatever the reason, when your small business is not doing well and you owe money to suppliers, banks, employees and others, our skilled Houston bankruptcy attorney can provide a solution to get you out of debt and help you move forward.
For some small businesses that are struggling, filing Chapter 7 bankruptcy may be a viable option. No two businesses are exactly the same. Whether you should file Chapter 7 bankruptcy, and whether it should be a business or personal filing depends upon several factors, including the structure of your company, your business’s assets and debts, and whether you want to keep running your small business.
Our Houston business bankruptcy attorney Andrew Weisblatt is here to answer your questions and help you understand the Chapter 7 process and whether it makes sense in your situation. Call Weisblatt Law Firm to schedule a consultation at (713) 666-1981.
What is Chapter 7 Bankruptcy for a Business?
What is Chapter 7 bankruptcy for a business? It is a way of resolving debt problems for businesses by liquidating the company. Bankruptcy is filed in the name of the business entity. The bankruptcy court appoints a trustee to oversee selling assets and paying creditors. Companies that file Chapter 7 business bankruptcy don’t remain in operation.
A Chapter 7 bankruptcy can be a viable option when a company’s debts are so weighty that restructuring or reorganizing them doesn’t make sense.
A Chapter 7 business bankruptcy can be used for corporations, partnerships and sole proprietorships that are organized as limited liability companies. However, for corporations and partnerships, filing a Chapter 7 bankruptcy can be very complex because partners and owners might not agree on whether filing is the right option. Ownership shares, asset division, possible personal debt responsibility and other factors must all be taken into account. Also, a Chapter 7 bankruptcy filing for business does not discharge remaining debt so creditors can pursue repayment.
Bankruptcy is a very complicated process at any time and is even more so in business situations. When your business is in trouble, don’t take unnecessary chances with your financial future. Our skilled attorney can advise you, based upon your individual circumstances, whether a Chapter 7 bankruptcy is the best choice for you. He can also counsel you about other potential debt-relief options.
Weisblatt Law Firm helps businesses effectively navigate the complex procedures involved with bankruptcies.
Can I Keep My Business if I File Chapter 7?
If you file a Chapter 7 business bankruptcy, your business will no longer be operational. However, if you are a sole proprietor who is not a limited liability company (LLC) and you want to get out from under debt and keep running your business, you may be able to do so by filing for personal bankruptcy. This option could pay off creditors and allow you to keep operating. If you file a personal Chapter 7 bankruptcy, it will typically wipe out both your personal and business debts.
However, there are some limited exceptions to having debt discharged. These include cases where debtors:
- Fail to keep adequate financial records
- Fail to satisfactorily explain asset losses
- Fail to obey lawful orders of the bankruptcy court
- Fraudulently conceal, transfer or destroy property
- Fail to complete an approved financial management course.
To qualify for a Chapter 7 personal bankruptcy, you must pass “the means test.” The means test uses a formula to discover whether your income is low enough to qualify for Chapter 7 bankruptcy. However, if your business debt is more than your personal debt, you don’t have to apply it, as the test concerns personal debt rather than business debt.
You can see that bankruptcy can be confusing and complex. When you have important questions for which you need sound answers, such as “Can I keep my business if I file Chapter 7,” speak with a seasoned bankruptcy attorney before making any decisions about what to do to resolve your debt problem. Every circumstance is different, and you need legal guidance that is tailored specifically to your business and personal situation.
Our experienced business bankruptcy attorney from Weisblatt Law Firm will review your circumstances and goals and advise you about the solution that is most advantageous in meeting your needs and put you on the road to financial relief. Call us today at (713) 666-1981.
Should I File Chapter 7 Bankruptcy for an LLC?
Every limited liability company has its own unique circumstances. Sometimes a Chapter 7 business bankruptcy can be feasible. But in other situations, a personal bankruptcy can be more advantageous. Sometimes limited liability company owners must do both to effectively get themselves out of debt.
Here are some things to consider when it comes to whether you should file Chapter 7 bankruptcy for an LLC and what kind:
- If you file Chapter 7 business bankruptcy for your LLC, your business assets will be sold to pay back your creditors. If there are any remaining debts, you will still be personally responsible for paying them if you have signed a personal guarantee to a creditor or guarantees to multiple creditors. Your remaining debts will not be discharged by a Chapter 7 business filing. The creditor can pursue payment in court. Depending on your circumstances, your solution to discharge all your debt may be to also file for personal bankruptcy.
- Your limited liability company will no longer be in business, but it will still exist as a legal entity. You will need to take further steps beyond the Chapter 7 filing to dissolve the business entity or you may still be responsible for taxes, filing annual reports and other things that can result in fines and penalties if you don’t do them. The steps for dissolving an LLC in Texas can be very complex and it is advisable to get help from a business attorney who understands the process.
Bankruptcy filings involve a lot of intricacies. A business attorney who is knowledgeable about bankruptcy for business will work to ensure that you achieve the best solution for your unique situation.
As your first step toward getting out from the pressure you are under from business debt, call Houston’s Weisblatt Law at (713) 666-1981 to set up a consultation about your case. We have helped thousands of business owners and have in-depth understanding of bankruptcy laws.
Talk to an Attorney About Additional Options for Getting Out of Business Debt
There are potentially other alternatives to a Chapter 7 bankruptcy for small businesses, depending upon the company’s assets and the level of debt. You may be eligible for debt restructuring or financial restructuring of your business outside of bankruptcy.
There are also other bankruptcy options that our attorney will explain to you:
- Chapter 13 bankruptcy is another alternative for sole proprietorships. It can be used to reorganize and repay business and personal debts.
- Chapter 11 is an option for corporations, LLCs and partnerships. In Chapter 11 bankruptcies, companies are reorganized and can continue operations under the guidance of court-appointed trustees.
Our skilled business lawyer will advise you about the most favorable option for you based on your unique situation.
Frequently Asked Questions
If you have questions about Chapter 7 and businesses, you may find the answers below. If not, please call us any time for more information.
Can collectors pursue me for business debt after I file for Chapter 7?
No. Once you file the bankruptcy paperwork, an automatic stay on all collection efforts related to your business’s debt goes into immediate effect. The stay prevents creditors and debt collectors from pursuing unpaid debt while proceedings are in process.
How long does it take to go through Chapter 7?
Of all of the types of bankruptcy, Chapter 7 is one of the fastest to go through. It can take between four and six months but may take longer under certain circumstances, such as:
- The trustee needs more information.
- A lawsuit related to the bankruptcy is ongoing.
- The debtor does not complete counseling courses.
- More time is needed.
Regardless of your circumstances, Weisblatt Law Firm will always seek prompt bankruptcy resolutions for you.
Does Chapter 7 have debt thresholds?
There are no explicit debt thresholds. However, your business’s financial circumstances and records will be thoroughly scrutinized to determine whether your business can pay its debts without going through bankruptcy.
What is a meeting of the creditors?
A meeting of creditors is a mandatory meeting between the bankruptcy petitioner, the bankruptcy trustee, and the petitioner’s creditors. During the meeting, the trustee and creditors will verify the information contained in your filing by posing questions. Your identity will also be verified with two forms of government-issued identification.
Still need more answers? Call Weisblatt Law Firm with your questions and get the clear answers you deserve.
You Need an Experienced Attorney to File a Chapter 7 Bankruptcy for a Business
Before you decide to file for Chapter 7 bankruptcy, get the help of a skilled bankruptcy for business attorney. You don’t want to make the wrong choice when it comes to the type of bankruptcy filing that would be best in your unique case. And you may not need to file for bankruptcy at all.
Filing for Chapter 7 bankruptcy has long-lasting ramifications. Our attorney who handles Chapter 7 bankruptcy for businesses can examine all the circumstances in your case and advise you of your most favorable options.
If you are considering bankruptcy as a means to relieve overwhelming financial pressure, call Weisblatt Law Firm at (713) 666-1981 for a free phone consultation. Learn how we can help your business move forward.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
