Houston Chapter 11 Bankruptcy Attorney

Business Reorganization to Preserve Your Company

Chapter 11 bankruptcy allows businesses to restructure debt while continuing operations. At the Law Office of Jeremy T. Wood, PLLC, we help business owners navigate this complex process to emerge stronger and more financially stable.

The Chapter 11 Process

1. Initial Filing: We prepare and file comprehensive bankruptcy documentation
2. Automatic Stay: All collection actions and lawsuits stop immediately
3. “Debtor in Possession” Status: Continue operating your business
4. Reorganization Plan: We develop and submit your debt restructuring plan
5. Disclosure Statement: Provide detailed financial information to creditors
6. Plan Confirmation: Court approval of your reorganization strategy
7. Plan Implementation: Executing the approved debt restructuring

Key Benefits of Chapter 11

• Business Continuity: Maintain operations throughout the process
• Legal Protection: Stop creditor actions while you reorganize
• Contract Renegotiation: Ability to modify or reject unfavorable leases and contracts
• Debt Restructuring: Convert unmanageable debt into sustainable payment plans
• Asset Protection: Preserve business assets while addressing debt
• Time to Recover: Breathing room to implement strategic changes

Who Can Benefit from Chapter 11

What Chapter 11 Can Accomplish

• Reduce Debt Principal: Potentially reduce total debt obligations
• Lower Interest Rates: Renegotiate terms for more manageable payments
• Extended Payment Terms: Lengthen repayment periods to improve cash flow
• Debt-for-Equity Swaps: Alternative restructuring options
• Contract Termination: Cancel unprofitable contracts and leases
• Business Model Adjustments: Time to implement operational improvements

Our Chapter 11 Services

Why Subchapter V Is the Smartest Path for Most Small Business Reorganizations

Subchapter V of Chapter 11, created by the Small Business Reorganization Act (SBRA), is one of the most powerful and underused tools in bankruptcy law. For qualifying businesses and individuals, it offers structural advantages that traditional Chapter 11 simply cannot match. It is my preferred tool for most business restructurings, and here is why.

No Absolute Priority Rule

In a traditional Chapter 11, the absolute priority rule requires that owners receive nothing unless all creditors are paid in full first. For most small business owners, this effectively means surrendering the company. Subchapter V eliminates this requirement entirely. You can propose a plan that pays creditors from future business income over time and retain your ownership interest – without being forced to give up equity to satisfy the rule. This single advantage changes the calculus of reorganization for most small businesses.

No UST Quarterly Fees on Plan Distributions

In a traditional Chapter 11, debtors pay quarterly U.S. Trustee fees based on disbursements made during the case – fees that can easily reach tens of thousands of dollars. Under Subchapter V, those quarterly fees do not apply to distributions made under a confirmed plan. The result is a dramatically lower cost of reorganization, making Sub V accessible to businesses that could not afford the traditional process.

The Sub V Trustee Works With You

A Subchapter V trustee is always appointed, but their role is fundamentally different from a traditional Chapter 11 trustee. They do not take over your business or manage your operations. Their job is to facilitate a consensual plan of reorganization – acting as a neutral resource to help bridge the gap between debtor and creditors. This collaborative structure keeps you in control while giving creditors a point of contact who helps move the case toward resolution.

Additional Sub V Advantages

• Faster Timeline: A plan must be filed within 90 days, keeping the case efficient and on track
• No Creditors Committee: No official committee in most cases, eliminating a major cost and complication of traditional Chapter 11
• Debtor Remains in Control: You stay in possession and continue operating throughout the process
• Broad Eligibility: Both businesses and individuals with primarily business debt can qualify, subject to the applicable debt limit

Begin Your Business Recovery Today

Don’t wait until your business is in crisis. Contact the Law Office of Jeremy T. Wood, PLLC at 713.366.1288 to schedule your free consultation and learn how Chapter 11 bankruptcy can help preserve and strengthen your business.