When faced with severe financial problems, many Texas residents may be compelled to file a bankruptcy proceeding. Many debtors who begin the process of filing bankruptcy find themselves at a loss for understanding the various methods and options used for different kinds of bankruptcy filings.
Often the question to answer is which kind of bankruptcy would best suit the debtor’s situation? How does a debtor find out which option to choose? Experienced bankruptcy lawyers can help answer these questions by providing information about the various provisions of Texas bankruptcy laws so a debtor can choose the right provision for his or her situation.
Chapter 11 bankruptcy proceedings specifically address reorganizing business assets in order to repay creditors. Chapter 11 bankruptcy proceedings are often recommended by the Law Office of Gordon Mosley when a small business owner repeatedly and for a long period of time defaults on repaying debts to creditors and does not see a means to recover from indebtedness.
No debtor should walk into a bankruptcy proceeding without knowing what is expected of the person and how to address these issues. For example, it would be advantageous to know the various types of debts which cannot be discharged under a Chapter 11 bankruptcy proceeding.
The business owner or proprietor can often benefit by discussing an asset reorganization specific to the person’s needs with a bankruptcy attorney, in order to determine if Chapter 11 proceedings would actually help the current financial situation of the business.
In some cases, where creditors and debtors have a long-term business relationship, an out of court settlement using arbitration or mediation can also be explored with the help of experienced attorneys. If the situation warrants, these alternative means of settling disputes are often recommended by attorneys to reach an amicable and speedy settlement.