Chapter 11 Bankruptcy Attorneys in Dallas
Put the Brakes on Creditor Harassment With a Chapter 11 Bankruptcy Filing
Let’ be frank. Your creditors would not annoy you if your business was generating the cash flow you need to pay your bills. No business can long survive without good cash flow. With the help of a Dallas bankruptcy lawyer, a Chapter 11 bankruptcy filing can protect you from creditor harassment while getting you needed time to protect your assets, restructure your business finances and your debts.
Here’s what a chapter 11 bankruptcy filing can do for you:
- Put an immediate halt to creditor collection efforts.
- Stop all pending foreclosure actions.
- Prevent utility companies from unplugging your business.
- Workout a creditor debt repayment plan.
What a Chapter 11 Bankruptcy Filing Can’t Do
- Provide the management skills required to navigate a business through the protracted Chapter 11 process into eventual prosperity.
- Increase market demand for what you sell.
- Increase the revenue your business generates.
Although a Chapter 11 filing is not the cure-all solution for operating a profitable business, it will give you time to determine the reasons why your business is not profitable, time to develop a game plan to make the business profitable and time to find new sources of capital.
How Chapter 11 Works
Chapter 11 gives business owners the chance to propose a reorganization plan to their creditors, which would include restructuring outstanding debts. In effect, the Plan allows business owners to repay the company’s secured and unsecured debts over a period of time. Secured creditors’ claims are often “crammed-down” to the current value of the collateral, which can result in substantially lower payments. This is precisely why secured creditors commonly prefer intimidating businesses into forced liquidations over Chapter 11 filings – to protect the value of their collateral. Unsecured debts are often negotiated down to pennies on the dollar, which also results in lower payments.
Experienced Bankruptcy Legal Representation
A successful Chapter 11 filing generally works to the advantage of debtors over creditors. However, success depends on creditors’ willingness to work with businesses through the duration of the workout plan. That’s why you an need experienced Dallas Chapter 11 bankruptcy attorney with the creativity and skills to formulate work out strategies acceptable to unsympathetic creditors.
Our bankruptcy legal team at Araiza Law has guided many businesses through the Chapter 11 filing. If your business is being hounded by creditors threatening foreclosures, lawsuits, liens, and repossessions.
We urge you to contact us immediately for a consultation. Call (214) 516-7776.