If you feel that you have reached the end of your sack when it comes to your finances, then it may be that you are thinking of filing for bankruptcy. As an individual living in America, you can do that, but before you actually take action, you will have to try and acquire as much information as possible. You may even discover that filing for bankruptcy may be the best thing to do or that in your situation is the worst thing to do.
There are six types of bankruptcies out there and Chapter 11 is one of them. Although clearly not as popularly known as Chapter 7 and as Chapter 13 (of which almost everyone out there has heard of), Chapter 11 may be the best solution for you under certain circumstances. First of all, what you may not have known about this particular type of bankruptcy is the fact that it is available both for businesses and for individuals. However, in most of the cases it will be corporations who will file it because it is more advantageous for them (although it may be this way for you or for a smaller business as well).
When it comes to its structure, Chapter 11 bankruptcy may appear to be similar to Chapter 7 bankruptcy, but there is a huge difference between them. In both of the cases, the assets of the debtor have to be sold in order to pay the lenders. However, in the case of Chapter 11 bankrupt debtors, they will be the owners of the entire set of assets they own. This means that the business owner(s) will be able to reorganize the business in such a way as to pay the lenders (they can ask for another loan and give them a certain percentage out of the profit, for example). However, bear in mind the fact that this reorganization will have to be approved by court and that you will have to thoroughly prepare it in order to do that.
Chapter 11 bankruptcy may appear to be a bit more complex than other types of bankruptcy, but a bankruptcy lawyer Dallas can actually explain you more about this and he/she can advise you on whether or not this is the chapter under which you should file your bankruptcy. Furthermore, the same bankruptcy attorney Dallas will be able to represent you in court and he/she will ensure that your rights and interests come forward to anything else.