The Henson Law Firm, PLLC is a Bankruptcy law firm in Tulsa, Oklahoma that assists companies facing financial difficulty who are considering filing for bankruptcy. Chapter 11 bankruptcy is usually reserved for corporations or partnerships and this type of bankruptcy permits the company to reorganize its debts. In certain situations, individuals and sole proprietors can also file for Chapter 11 bankruptcy. Chapter 11 bankruptcy is often referred to as a “reorganization” bankruptcy. While many people imagine that business bankruptcy means that the company goes out of business, with Chapter 11 bankruptcy, the company can often continue to do business and keep its employees. Chapter 11 bankruptcy works under the premise that a company can sometimes be more valuable intact, rather than the value of selling its property and assets.
If you are a business owner you might be wondering if you should choose Chapter 11 bankruptcy or another type of bankruptcy. Ultimately, Chapter 11 bankruptcy is used when the revenue a business can continue to generate is still considered higher than the value of the business should its assets get liquidated. For some businesses that are generating no revenue or don’t stand to generate revenue in the future, Chapter 7 bankruptcy may still be the best option. Ultimately, deciding which bankruptcy option you’ll use will depend on the long-term survivability of your business. A good business that fell underwater in debt may be able to survive with Chapter 11, while a business in a failing industry may be better off cutting its losses and filing for Chapter 7.
In the wake of the coronavirus pandemic, many businesses are struggling to stay afloat. Business owners have had to lay off workers. Brick and mortar stores are struggling. Restaurants have shut down or are re-opening only to find that their customer base is reduced. If you have a business and are drowning in debt, or are struggling in the wake of the COVID-19 pandemic, Chapter 11 bankruptcy may be an option that can save your business. The Henson Law Firm is a Chapter 11 bankruptcy law firm in Tulsa, Oklahoma that may be able to help.
Can Chapter 11 Bankruptcy Save My Business in Tulsa, Oklahoma?
Major businesses have used Chapter 11 bankruptcy to keep their companies afloat. Small business owners can likewise use Chapter 11 bankruptcy in certain situations to save their businesses. But is Chapter 11 right for your small business?
Business owners should consider speaking to a Chapter 11 law firm if they are considering filing for bankruptcy. Ultimately, in order to move forward with Chapter 11, a judge must approve the reorganization plan and creditors who will be affected by the bankruptcy must also approve the plan. Creditors who stand to receive more money with a Chapter 11 bankruptcy than they would with a liquidation used in Chapter 7, may be more likely to approve the Chapter 11 reorganization. Ultimately, the success or failure of Chapter 11 bankruptcy will depend on your reorganization plan, how much you owe to creditors, and the future viability of the business. In some Chapter 11 reorganizations, creditors receive equity in the business in exchange for forgiving or reducing some debts. Each reorganization will depend on your debts, your income, and your situation.
The Henson Law Firm is a Chapter 11 bankruptcy law firm in Tulsa, Oklahoma that may be able to help you if your business is struggling with debt and profitability. A Chapter 11 bankruptcy may be one option your business has to stay afloat. However, it is not your only option and may not always be a business owner’s best option. Reach out to the Chapter 11 bankruptcy lawyers at the Henson Law Firm in Tulsa, Oklahoma today to learn more about your options under the law if your business is struggling with debt.
Help with Chapter 11 Bankruptcy in Tulsa, Oklahoma
If you are a business owner struggling with debt, if your business has been hard hit by COVID-19 shutdowns, or if you have questions about whether your company (or you as an individual) could benefit from bankruptcy, the Henson Law Firm is a bankruptcy law firm in Tulsa, Oklahoma that may be able to help you. Our Chapter 11 bankruptcy lawyers can review your situation, help you understand your options under the law for bankruptcy, and help you proceed. In order to file for Chapter 11 bankruptcy you may need to meet certain eligibility requirements and put together a coherent plan for reorganization. Having a bankruptcy lawyer on your side to help you with these steps can be useful. In recent months many businesses have been struggling to pay debts. You are not alone. The economic reality is dire for many small businesses and companies. The Henson Law Firm is a Chapter 11 bankruptcy lawyer in Tulsa, Oklahoma that can help you evaluate whether Chapter 11 or another bankruptcy type is right for you.