How a Business Divorce Leads to Reorganization Through Chapter 11 Bankruptcy
When a couple who owned a business together files for divorce, one of the biggest questions involves what will happen to the business. In many cases, the situation will lead to a reorganization through Chapter 11 bankruptcy. Since it is likely filing for Chapter 11 will have been done after the couple has filed for divorce, many factors will come into play. To make sure the correct decisions are made along the way, consult with Dallas bankruptcy lawyers at Pronske & Kathman.
Division of Property
In these cases, filing Chapter 11 bankruptcy will automatically stay any dissolution dealing with the division of property between the couple. However, matters regarding child support or spousal support will generally move forward unless there is a property issue involved. But to make sure all matters are properly handled, it is usually recommended the non-bankruptcy debtor spouse petition the bankruptcy court for an order of relief. Since this can be a complex process, contact Dallas bankruptcy lawyers at Pronske & Kathman.
Meeting of Creditors
During the course of a bankruptcy filing, you will be required to have a Meeting of Creditors. At this meeting, you can ask various questions about certain business assets and debts that may be owed to you, but not have the meeting dissolve into a search for marital assets. However, should you believe there are hidden marital assets, the bankruptcy code does allow you to seek a special deposition. Should you feel this is necessary, this is a topic that should instead be discussed in a separate meeting with your Dallas bankruptcy lawyers.
Since a business divorce can be complex and filled with numerous details that must be worked out to everyone’s satisfaction, it is imperative you work only with experienced and knowledgeable attorneys. To do so, discuss your situation in detail by scheduling a consultation today with Pronske & Kathman.