Texas Attorney Manages Chapter 11 Bankruptcy
Skilled lawyer assists distressed businesses in the Austin area
If your corporation, partnership or sole proprietorship in the Austin area or Texas is struggling with substantial debt, Frank Lyon can help guide you through the Chapter 11 bankruptcy process to keep your business viable while you develop fresh strategies for future growth. Often referred to as “reorganization bankruptcy," Chapter 11 permits your business to operate while you pay creditors under a court-ordered payment plan. As an experienced bankruptcy attorney, I can help you file Chapter 11 quickly and efficiently. Once your business has filed for bankruptcy, creditors must immediately stop collections efforts, including harassing letters and phone calls.
Proven adviser guides business clients through the Chapter 11 bankruptcy process
While the Chapter 11 process is underway owners continue to operate the business a “debtor in possession," unless the court detects fraud, dishonesty, incompetence, or gross mismanagement that necessitates the appointment of a trustee.
The bankruptcy court must approve certain major decisions for the debtor while the business remains in bankruptcy. Such matters might include:
- Sale of assets, except for items of inventory
- Entering into or breaking a lease for property or equipment
- Mortgages or other secured financing arrangements for borrowing during the bankruptcy
- Discontinuing or expanding operations
- Modifying union, vendor, licensing, and other contracts
- Fees and expenses to attorneys and other professionals
After filing, the debtor enjoys an exclusivity period, which the court can extend or shorten, during which only the debtor can propose a restructuring plan for addressing the debts. Although creditors have a voice in approving or rejecting a Chapter 11 plan, the court has the final say and decides to confirm a plan based on requirements that include:
- Good faith
- Best interests of the creditors
- Fairness and equity
Confirmation of the reorganization plan establishes the terms for dealing with your business debts that were acquired prior to the plan’s confirmation. Your business and its creditors are bound by the terms of the reorganization plan, which supersede all terms existing prior to the plan's confirmation.
Since the future success of your business depends greatly on the quality of your Chapter 11 plan, you should seek reliable advice from an experienced business bankruptcy attorney like Frank Lyon.
Knowledgeable lawyer helps sole proprietors protect their personal assets
The owner of a sole proprietorship does not have an identity separate from the business, so the bankruptcy court does not distinguish between the business’s assets and the owner’s personal assets. Frank Lyon can develop successful strategies to protect your personal assets from your business’s creditors while putting your business in the best possible position to succeed going forward.
Subchapter V may be right for your business. In February 2020, a new provision of Chapter 11 came into effect, which is referred to as "Subchapter V (5)", Subchapter V is a streamlined, less expensive alternative to Chapter 11 for businesses (or individuals who debts are mostly business related) with less than $2,725,625 ($7,5 million through March , 2021 due to a provision in the CARES Acts as a result of Covid-19), Frank Lyon filed the first Subchapter V in the Western District of Texas which includes Austin, San Antonio, Midland-Odessa, laredo, and El Paso.
Contact an experienced Texas bankruptcy attorney for your Chapter 11 filing
Frank Lyon assists with Chapter 11 business bankruptcies throughout Texas. Call or text at 512-646-6052 or you may contact me online to schedule your consultation at my Austin office.