Houston Area Chapter 7 Bankruptcy (Business)
What is a business Chapter 7 bankruptcy in Texas?
A business Chapter 7 is a liquidation. This is a bankruptcy for a business entity (such as a partnership, corporation [‘Inc.’], or limited liability corporation [‘LLC’]). The business entity files for Chapter 7 bankruptcy, not the business owners.
Can I still run my business if it files a business Chapter 7 bankruptcy?
No, a business filing a Chapter 7 bankruptcy will not continue to operate. BUT – if you are self-employed, a sole proprietor, or doing business as (‘D/B/A’) you may benefit from a personal bankruptcy (instead of a business bankruptcy) and may be able to continue your business.
What is the benefit of a business Chapter 7 bankruptcy in Houston?
A business Chapter 7 allows for orderly liquidation of your assets. This will prevent creditors (employees, suppliers, banks, etc.) from arguing that the business’ assets were sold in an unfair manner. The Chapter 7 Trustee is responsible for collecting and selling all of the business’ assets (including cash and bank accounts) and distributing the money to the business’ creditors. If your business is struggling with debt, call me today to schedule a consultation to review the business’ options.
Does my business qualify to file Chapter 7 bankruptcy in Houston?
The first fact we look at to determine if a business can file Chapter 7 bankruptcy in Houston is where the business is located. Houston is in the “Southern District of Texas” which includes the following counties: Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller and Wharton. If your business is located in Brazoria, Chambers, Galveston or Matagorda County you may also elect to file your business bankruptcy in Houston.
The second fact we look at is whether the business has assets to liquidate to determine if the business may qualify to file a Chapter 7 business bankruptcy. If the business does not have any assets (money in the bank, inventory, equipment, tools, vehicles, etc.) the business may be prohibited from filing Chapter 7 bankruptcy in Houston. There are legal and practical reasons for this which I can explain when we speak. After an in person consultation you will learn whether your business would benefit from filing a Chapter 7 bankruptcy or not.
Dove Law Firm, PLLC
Call the Dove Law Firm, PLLC today to schedule a free consultation to find out which option makes sense for you!
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