Houston Bankruptcy Lawyer for Small Businesses

Over 70 Years Helping Houston Businesses Find a Fresh Start

Running a small business is costly, even when you manage it well. Debts taken on to start or sustain the business can accumulate faster than profits, and before long, the financial pressure becomes overwhelming. That’s not failure. It’s a challenge our team at Guzman Law Firm has helped Houston business owners work through for more than seven decades.

We handle both Chapter 7 and Chapter 13 Bankruptcy for small businesses throughout Houston, and we approach every case the same way: by understanding your situation first and recommending a path second. Bankruptcy isn’t the end of your business. For many owners, it’s a legal tool that can help support its survival.

Contact us online to discuss your small business bankruptcy case today.

Our Commitment to Helping Small Businesses Navigate Bankruptcy

Every case we take starts the same way: we investigate the details of your situation before recommending any course of action. When non-bankruptcy remedies can maximize your financial position and protect eligible assets, we pursue those first. Our working relationships with Houston bankruptcy judges, trustees, and creditor bar representatives can provide a strategic advantage in proceedings and in negotiations that never reach the courtroom.

If bankruptcy is the right option for you, we can thoroughly explain how the process works and what it means for you and your business. As Houston bankruptcy lawyers, our goal is to help you pursue debt relief and a fresh start while evaluating whether you can keep running your business. We handle both straightforward and complex cases, and complex matters have access to the resources needed for a thorough resolution.

Explore Your Bankruptcy Options:

Understanding Chapter 13 Bankruptcy for Small Businesses

Chapter 13 is available to sole proprietors who want to keep the business running while addressing debt. You propose a repayment plan lasting three to five years that covers both your business obligations and personal debts under one filing. Filing triggers an automatic stay: an immediate court order that halts foreclosure, repossession, wage garnishment, and creditor contact. Because Chapter 13 requires a regular source of income to qualify, it works best for owners whose business remains active. If you want to address your obligations through a structured repayment plan while keeping the business open, this may be the right path forward.

Understanding Chapter 7 Bankruptcy for Business Liquidation

Chapter 7 is a liquidation process: a court-appointed trustee collects and sells the business’s non-exempt assets to pay creditors, and the business doesn’t continue operating after filing. Filing triggers an automatic stay that immediately stops creditor collection activity, lawsuits, and creditor harassment. For sole proprietors, a personal Chapter 7 filing may be a better fit than a business filing because it can discharge both personal and business debts together. Whether Chapter 7 is filed as a business or personal matter depends on the business’s structure, assets, and your goals. If you’re facing creditor actions such as foreclosure or repossession, Chapter 7 may be an option to address those actions and your debt.