Helping small and mid-sized businesses in Texas restructure, reduce, and reorganize debt since 2009. We develop bankruptcy solutions that fit your unique business needs.
Get a Confidential ConsultationWith experience working in business bankruptcy since 2009, The Lane Law Firm's team of bankruptcy attorneys offers more than just a "one-size-fits-all" bankruptcy process. Our team works with you to look at all of your options - both bankruptcy and non-bankruptcy - and develop a solution that is specific to your type of business, your personal liability, and the type of creditors you're dealing with.
If bankruptcy is the best solution for your business, our team will guide you through the following options:
Each of these business bankruptcy options offers distinct advantages, but the choice depends on your personal and business goals, as well as the unique circumstances of your business.
Each type of business bankruptcy has unique advantages, but the option you choose depends on your personal goals, your business goals, and your business's unique situation.
When your business is overwhelmed with debt and can't keep up with payments, business bankruptcy may seem like the only option. But business bankruptcy is much more complex than personal bankruptcy. A one-size-fits-all approach will not work. You need personalized, experienced business bankruptcy representation. That's where we come in.
I hired The Lane Law Firm to deal with my bankruptcy. They were very helpful, professional, and returned phone calls in a timely manner. I had no issues with the law firm and would recommend them.
- Austin R
What is a Chapter 11 Bankruptcy?
A Chapter 11 bankruptcy allows a business to restructure debt while keeping business assets and income untouched. Also known as the "reorganization" bankruptcy, Chapter 11 makes it possible for your company to remain in business while working out payment arrangements with creditors. There are no debt limits, and a trustee is generally not appointed to run your business or handle your cash, though one can be appointed if needed.
A Chapter 11 bankruptcy provides flexibility on how your business manages bankruptcy, and what you accomplish with the process. Advantages include:
Chapter 11 Subchapter 5 bankruptcy represents a streamlined process for small business bankruptcy, intended to rescue businesses and aid owners in avoiding personal bankruptcy.
It is designed to be quicker, less costly, and, most crucially, to shield businesses from aggressive creditors, allowing business operations to proceed without disruption. Subchapter 5 was introduced to Chapter 11 Bankruptcy Law through the Small Business Reorganization Act of 2019, aiming to assist small businesses in restructuring and reducing debt, thereby conserving both fees and time. While Congress works on raising the debt ceiling, to be eligible for Subchapter 5 business bankruptcy, your business should have non-contingent, liquidated debts not exceeding $3,024,725.
Chapter 5 bankruptcy is actually Subchapter V of Chapter 11 bankruptcy, and it offers substantial cost-savings and the discharge of both secured and unsecured debt which is deemed unaffordable. It is only available to businesses with no more than $3,024,725 in non-contingent, liquidated debts (i.e., typically excludes: lawsuits, guarantees, pending obligations, disputed claims/debts, etc.).
Read more about this type of bankruptcy in our article Understanding Subchapter 5 Business Bankruptcy.
What is a Chapter 7 Business Bankruptcy?
Different from a Chapter 7 personal bankruptcy, a Chapter 7 business bankruptcy lets owners turn their business over to a trustee for an orderly liquidation. Commonly known as the "liquidation" bankruptcy, a Chapter 7 bankruptcy stops business operations and gives the court power to liquidate its assets and pay what it can to business creditors. When the liquidation is complete and the proceeds have been paid out to creditors, the business won't owe any remaining debts.
Chapter 7 business bankruptcy is best for businesses that see no viable financial future for their business. When a business is too far in debt to dig out, there is no need for a restructuring plan. Chapter 7 provides a way for owners to get out of the business — and out from under its debts — with minimal personal damage.
If you are personally liable for business debts, you may still be on the hook for those debts, even after your business's liability is resolved in business bankruptcy. If business debt is affecting your personal finances, personal bankruptcy may be an option. While it's never a decision to enter into lightly, The Lane Law Firm's bankruptcy attorneys can carefully assess your situation, and provide you with the solution that protects you and your family.
Texas business bankruptcy is a complex legal issue. Get experienced advice from attorneys dedicated to finding a comprehensive solution that meets your needs — whether that’s Chapter 7, Chapter 11, or Chapter 11 Subchapter 5 bankruptcy. Schedule a free consultation with The Lane Law Firm's bankruptcy attorneys today, or leave us a message below.
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