Texas is open for business, as the saying goes. But that doesn’t mean that every business in Texas stays open. A new report by Androvett Legal Media shows that in Texas, Chapter 11 bankruptcies rose by 42 percent from 2015 to 2016.
Stephen Sather specializes in bankruptcy law at the Austin law firm Barron and Newburger. He says Chapter 11 doesn’t necessarily mean a business is closing down.
“Chapter 11 is the business reorganization chapter of the bankruptcy code,” he says. “[It] can be used for either restructuring a business to keep it open or as an efficient means for selling the assets to another buyer that can make better use of them.”
What you’ll hear in this segment:
– Why the big leap in bankruptcy filings in the State
– What kinds of companies are filing for bankruptcy and where
– What happens after filing Chapter 11
– How bankruptcy could be a sign that the economy is starting to turn around