Are you looking for a business bankruptcy lawyer in Dallas, TX?
At Leinart Law Firm, we offer business owners the opportunity to schedule a consultation with a Dallas business bankruptcy lawyer today.
If your Dallas company can no longer keep up with its loans, vendor accounts, or tax obligations, business bankruptcy may allow you to close the business in an orderly way or reorganize and continue operating. Our Dallas, TX business bankruptcy lawyer can review the company’s finances and your personal exposure before you decide.
Leinart Law Firm has represented small business debtors for more than 15 years. The firm has served debtors since Marcus Leinart established it in 2005, and its attorneys focus solely on bankruptcy and debt relief. Reach out to arrange a review of your company’s debts.
Business Bankruptcy Lawyer Dallas, TX
A business bankruptcy attorney advises companies and their owners on using federal bankruptcy law to liquidate or restructure business debt. The attorney evaluates the company’s structure and obligations, identifies which chapter applies, and assesses whether the owner faces personal liability through guarantees or shared accounts. The attorney then prepares the filing and represents the business or owner before the trustee and the court. A business bankruptcy attorney in Dallas also advises owners who are weighing an informal wind-down against a formal case.
Dallas County had 71,182 employer establishments in 2023, along with 295,167 nonemployer businesses such as sole proprietorships with no payroll.
Types of Business Bankruptcy Cases We Handle in Dallas
The right approach depends on how the business is organized and whether the owner intends to keep it open. A sole proprietor and a limited liability company face different rules. Our Dallas business bankruptcy attorney represents owners in the matters below.
- Business closures under Chapter 7. A Chapter 7 trustee sells the company’s nonexempt assets and pays creditors in order of priority. The case brings an orderly end to a business that cannot continue.
- Small business reorganizations. Chapter 11 allows a company to keep operating while it restructures debt under a court-approved plan. A business reorganization can preserve customer relationships, contracts, and jobs.
- Failed business bankruptcy. When a company has already closed, its remaining debts often fall on the owner. We review which of those obligations can be resolved in a personal filing.
- Personal guarantees. Lenders and landlords frequently require owners to sign personally for business obligations. A guarantee can make the owner responsible for a debt the company cannot pay.
- Sole proprietorship debts. A sole proprietor’s business debts are personal debts. They are addressed in an individual case. The effect on business debts depends on the chapter selected.
- Chapter 7 bankruptcy. An owner whose debts are primarily business debts is generally not subject to the Chapter 7 means test. A personal Chapter 7 case can discharge guaranteed obligations along with other unsecured debt.
- Chapter 13 bankruptcy. A sole proprietor with steady income can repay debts through a plan while continuing to operate. The plan can also address arrears on a home or vehicle used in the business.
- Vendor and supplier debts. Unpaid trade creditors may sue the company or demand payment from the owner. A filing stops those suits and resolves the claims in a single proceeding.
- Equipment and vehicle loans. Lenders secured by business equipment or vehicles may move to repossess. Chapter 11 or Chapter 13 can allow the business to keep collateral it needs to operate.
- Commercial leases. A bankruptcy case can address an unexpired lease the business can no longer afford. Owners who guaranteed the lease may face personal liability for the balance.
- Foreclosure. Owners sometimes pledge their home to secure business financing. A bankruptcy filing can stop a pending foreclosure sale on that residence.
Why Choose Leinart Law Firm as My Business Bankruptcy Lawyer in Dallas, TX?
Experience in the Court That Hears Dallas Cases
Companies and owners in Dallas County file their cases with the Northern District of Texas bankruptcy court through its Dallas Division. Marcus Leinart holds admission to practice there. He has held a Texas law license since 1995. His bankruptcy filings number in the thousands.
He earned his law degree at Texas Tech University after completing a business administration degree.
Locally, he belongs to the Dallas Bar Association.
An owner deciding between closing and reorganizing has to weigh the company’s prospects against the owner’s personal exposure. Helping an owner make that decision with full information is a responsibility of any bankruptcy lawyer in Dallas, TX. Marcus reviews those choices with each owner directly. He also explains how Texas exemptions shield a homestead and personal property if the owner files individually.
A Record of Debt Relief
Our results are counted in the number of clients served rather than in dollar figures. Leinart Law Firm began as a one-employee practice and now includes several attorneys. Over that time, our clients have been able to:
- Discharge overwhelming unsecured debt
- Stop creditor harassment and collection efforts
- Prevent bank account freezes
- Retain their homes and vehicles when possible
Understanding Business Bankruptcy Cases
Business Bankruptcy Chapters and What Qualifies
Federal law provides several routes for a struggling business. The chapter that fits depends on the entity type, the owner’s goals, and the amount of debt.
- Chapter 7 for a business entity: The trustee liquidates the company’s assets. A corporation or LLC does not receive a discharge, so the case ends the business rather than freeing it from debt.
- Chapter 7 for an individual owner: An owner can discharge personal liability, including many guaranteed business debts, in a personal case.
- Chapter 11: The business generally remains in control of its operations as a debtor in possession while it proposes a reorganization plan.
- Subchapter V of Chapter 11: Eligible small business debtors can use a streamlined process with shorter deadlines and a trustee who oversees the plan.
- Chapter 13: Available to individuals, including sole proprietors, with regular income and debts within federal limits.
What Are Important Aspects of a Business Bankruptcy Case?
Business cases raise issues that rarely appear in a consumer filing. Each of the following can change which chapter is appropriate.
- The entity type and whether the owner is personally liable for any business debt
- Personal guarantees signed for loans, leases, and credit lines
- Whether business and personal funds were kept in separate accounts
- Payroll taxes and other obligations that may survive the case
- Whether filing for bankruptcy would preserve more value than an informal wind-down
Personal liability for company debt usually arises from a signed guarantee or from mixing personal and business finances. A business bankruptcy lawyer in Dallas can review the company’s records to identify that exposure.
What Is the Business Bankruptcy Case Timeline?
A liquidation generally moves faster than a reorganization. Most business cases follow the sequence below.
- Review of the company’s financial records, contracts, and debts
- Selection of the chapter and preparation of the petition and schedules
- Filing the case, which puts the automatic stay into effect
- Questioning by the trustee at the creditors’ meeting
- Liquidation of assets in Chapter 7, or proposal and confirmation of a plan in Chapter 11 or Chapter 13
- Closing of the case or completion of plan payments
For a company that intends to reorganize, the automatic stay provides time to develop a plan without the pressure of pending litigation.
What Should You Bring to Your Business Bankruptcy Consultation?
A Dallas business bankruptcy attorney needs records from both the company and the owner to assess personal exposure. Please bring the following documents.
- Recent business tax returns and profit and loss statements
- A list of business creditors, including amounts owed and any collateral
- Copies of loan agreements, leases, and any personal guarantees
- Business and personal bank statements for recent months
- Any lawsuit papers, demand letters, or tax notices
The attorney can review the records and explain whether a business filing, a personal filing, or both would be appropriate. Owners can also ask about the effect on partners, co-owners, and anyone who co-signed a loan.
Northern District of Texas Bankruptcy Court and Local Resources
Business and individual cases from Dallas County are heard in the Northern District’s Dallas Division, which also serves Ellis, Kaufman, Rockwall, and nearby counties.
The Region 6 office of the U.S. Trustee Program supervises the administration of bankruptcy cases in the Northern and Eastern Districts of Texas, including Chapter 11 reorganizations.
Legal Aid of NorthWest Texas offers civil legal services to Dallas County individuals, including sole proprietors, who qualify by income.
Reach Out to Leinart Law Firm to Schedule a Consultation
A business owner facing unmanageable debt has more options when the review begins early. Our Dallas business bankruptcy lawyer can review the company’s debts and your personal exposure, then explain whether closing, reorganizing, or a personal filing fits your circumstances. Leinart Law Firm provides the first business bankruptcy consultation free of charge. Contact us to book a meeting about your company.