If your small business didn’t go as planned…
bankruptcy might be the best solution
At Richard Hughes Law Firm, we help Jacksonville business owners find practical, strategic solutions to overwhelming debt. With Richard Hughes, you get personalized bankruptcy guidance designed to protect your business, your assets, and your peace of mind.
Trust in Experience
Expert Business Bankruptcy Guidance
With over 30 years of experience as a business bankruptcy lawyer serving Jacksonville, TX, Richard Hughes understands the financial challenges that local businesses face. He works closely with business owners across East Texas to find solutions that make sense legally and financially. Whether your company is struggling with mounting bills, declining revenue, or creditor pressure, Richard Hughes can help you navigate your options and regain financial stability.
Tailored Bankruptcy Strategies for Businesses
No two businesses are alike, and neither are their financial challenges. That’s why Richard Hughes provides customized bankruptcy strategies that align with your goals.
He can help you evaluate whether Chapter 7 business liquidation or Chapter 11 reorganization is the right path for your situation.
Whatever your situation, Richard Hughes will walk you through every step and ensure you understand your rights and responsibilities.
Protecting Your Business Assets & Interests
As a skilled business bankruptcy lawyer, Richard Hughes will explore every financial avenue to minimize the impact on your business and create a solid foundation for success after bankruptcy. He has extensive knowledge of business bankruptcy law and is a fierce advocate and negotiator for your business during its hardest times.
Contact Richard Hughes Law Firm
If your Jacksonville business is facing overwhelming debt, don’t wait until it’s too late to act. Richard Hughes Law Firm is here to help you understand your options and take the first step toward financial relief.
Contact us today to schedule a confidential consultation and get the guidance you need from an experienced business bankruptcy lawyer in Jacksonville, TX.
Business Bankruptcy FAQs
What’s the difference between Chapter 7 and Chapter 11 bankruptcy?
Both Chapter 7 and Chapter 11 bankruptcy work to help businesses discharge debts.
If you’re filing for Chapter 7, the business entity is liquidated and terminated. An assigned trustee liquidates the company’s assets in order to pay the debts.
For Chapter 11, a company’s debts are restructured, which enables the company to reject leases, pay tax obligations over time, sell unneeded assets, and more. With Chapter 11, debtors can retain ownership of their business, unlike with Chapter 7.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is used by traditional businesses and corporations. To pay as many creditors as possible, the business is liquidated, and then the remaining debts are discharged.
A court-appointed trustee oversees the Chapter 7 bankruptcy, manages the liquidation, and represents creditors’ interests.
Do I have to qualify for Chapter 7 bankruptcy?
Yes, Chapter 7 bankruptcy has income requirements. You won’t be able to qualify if you make too much money.
To ensure creditors get their money back, debtors who can fund a Chapter 13 repayment plan must do so instead of filing for Chapter 7 bankruptcy.
Generally, if your income is below the median income for your area, you will likely qualify for Chapter 7. However, regardless of income, a judge is always able to require you to file Chapter 13 if you have sufficient funds.
What is a “means test”?
A means test determines if you qualify for Chapter 7 bankruptcy. Your finances are tested using a formula that determines your eligibility.
You can check if you pass the means test with free calculators available online.
Will Chapter 7 wipe out all of my debts?
While Chapter 7 wipes out many unsecured debts, it won’t wipe away:
- Past-due child support
- Student loan payments
- Recent debts for luxury goods
- Debts incurred via fraud (like bad checks)
- Some tax debts
Can I keep my home in a Chapter 7 bankruptcy?
If your home equity is exempt from Chapter 7 bankruptcy–meaning that you’re current on your mortgage payments–you’ll be able to keep your home.
If you’re behind on your mortgage, it will be liquidated. In Texas, our homestead exemption protects your home or use its equity to pay debts.
How will Chapter 7 affect my credit?
All bankruptcies will dramatically affect your credit scores in the short term. However, bankruptcies only appear on your credit score for 10 years, and you have many options for rebuilding your credit during that time.
What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy allows an individual or business entity to reorganize debts while receiving protection from creditors.
Who can file for Chapter 11 bankruptcy?
Most people can file Chapter 11 bankruptcy since there are no debt or income restrictions. Individuals, partnerships, incorporated entities, and others are also allowed to file.
However, Chapter 11 is usually the most complicated type of bankruptcy, which is why it’s more commonly used by businesses than individuals.
Are there income requirements or restrictions for Chapter 11?
There are no income requirements to file for Chapter 11 bankruptcy, and this option is available to most businesses and individuals.
What happens when a business files for Chapter 11?
When you file for Chapter 11, your business will be reorganized to repay your creditors. A trustee will be assigned to represent the interests of the creditors.
An automatic stay for your debts will be issued by the courts. This allows you time to liquidate your assets and rearrange your debts to pay off your creditors.
What is an “automatic stay” in Chapter 11 bankruptcy?
After you file for Chapter 11 bankruptcy, the court places a stay to your creditors. This prevents them from continuing to attempt to collect your debt. Instead, they must wait for the business reorganization to finish.
What does it mean to “reorganize” business debts?
While reorganizing your debts with Chapter 11 can mean a few different things, in general, it lowers the burden your debt causes.
This may include liquidating assets to pay off debts or negotiating with creditors to reduce monthly payments in exchange for paying over a longer period of time.
These strategies allow you to keep running your business during bankruptcy and afterwards.
Will I retain control of my business after Chapter 11?
Yes, you’ll be in control of your business during and after filing Chapter 11 bankruptcy. While the trustee has some authority of your assets, you still will be in charge of daily operations and business decisions.