If calls from dozens of creditors has become an unwanted daily occurrence or if a business is experiencing critical cash flow issues due to an unfortunate accident, it may be time for them to consider filing for bankruptcy. Both individuals and businesses often wrongly see filing bankruptcy only as a last resort because they do not adequately understand what filing for bankruptcy entails and fear they will lose everything.

However, filing for bankruptcy might be able to provide an individual or business protection from creditors for a time, depending on their specific situation. With the help of an experienced Houston bankruptcy attorney who is board certified, filing bankruptcy can help an individual or business take back control of their situation instead of being at the mercy of unrelenting creditors.

What Is Bankruptcy?

Bankruptcy is defined as being lacking or in a state of impoverishment, and it can apply to both individuals and small businesses, but typically for different reasons.

Some of the more common reasons for individuals to file bankruptcy can include:

  • Divorce
  • Emergencies
  • General debt
  • Job loss
  • Mounting medical bills
  • Overwhelming credit debt
  • Other unexpected expenses

When it comes to businesses, reasons for filing for bankruptcy could be:

  • Accidents
  • Cash flow problems
  • Loss of capital
  • Loss of clients
  • Poor management
  • Powerful industry competition
  • Rising operating costs
  • Tax-related problems

Areas of Legal Expertise Within Bankruptcy

Although the word bankruptcy generally boils down to one common meaning, there are different types of bankruptcy and issues that arise within each. Bankruptcy can affect an individual or a business and can be designated as Chapter 7, Chapter 11, or Chapter 13, and related bankruptcy issues can include asset acquisition, creditor representation, and debtor in possession lenders.

Some of the specific areas of bankruptcy in which Harold “Hap” May, P.C. Attorneys at Law can help include:

Debtor in Possession Lender

If a company is forced to file for Chapter 11 bankruptcy, it does not automatically equal liquidation of the business. In some cases, the company can reorganize with the help of a lender that provides funds. DIP areas in which we may be able to assist are DIP financing, DIP agreements, and priming liens just to name a few.

If you or your business is struggling financially and you would like a consultation to discuss bankruptcy and if it is the next best step, Harold “Hap” May, P.C. Attorneys at Law welcome the opportunity to speak with you.