All types of business owners in Texas file for bankruptcy to repay debts that cannot be forgiven or eliminated. Whether it’s Chapter 7, 11 or 13 bankruptcy, the process involves having to pay one-time and recurring fees, penalties and interest. There is an affordable legal process that comes with filing for bankruptcy.
SCOTUS bankruptcy ruling
The Supreme Court ruled that Congress has no right to implement bankruptcy fees that affect recipients in 48 states but exclude two states. They claimed that this law violates the bankruptcy clause in the Constitution that requires uniform laws in all 50 states.
Considering business bankruptcy fees
A business that files for bankruptcy is not wholly relieved from their financial responsibilities. They have to pay fees for business bankruptcy that are included with the privilege of being absolved of their debts. However, for most filers, the costs of remaining in debt often exceed the costs of one-time fees by tens of thousands of dollars.
In Texas, business owners who file for bankruptcy are expected to lose some money while restructuring their debts. If the business remains, its value may be reduced after a number of assets are partially or completely sold. It is usually harder for the owner to seek additional lending or open another business in the future.
Filing for business bankruptcy includes the fees of filing a claim and may include the increased costs of hiring a bankruptcy attorney. Texas’s laws of bankruptcy are mainly set by federal laws, so the process is similar as in many other states. In general, bankruptcy fees are affordable to most small and large business owners.