Debtor Representation
DEBT RESTRUCTURING IN TEXAS AND NATIONWIDE.
There are multiple options when a person or company is unable to pay debts as they come due while covering necessary expenses.
Creditors may be willing to work with the debtor to adjust repayment terms,
debt may be refinanced,
assets may be liquidated,
or debtors may seek relief from the Bankruptcy Code.
Chapter 11 of the Bankruptcy Code allows a company (or individual) to reorganize its financial affairs and alter debtor/creditor relationship.
Generally, the goal is for the debtor to emerge from bankruptcy with obligations determined by a plan of reorganization. This plan needs to be confirmed by the bankruptcy court and, in most instances, have at least some creditor support. Navigating the procedural requirements of Chapter 11 and confirmation of a plan require significant effort by the debtor.
Other options exist in bankruptcy. Chapter 11 can also be used to liquidate assets in a company-specific way managed by the debtor rather than a fire-say through a typical liquidation or fire sale. Chapter 7—with or without a prior corporate reorganization—is an option when liquidation managed by the debtor is not necessary. Chapter 13 is an option for individuals with regular income.