Court Coverts Chapter 11 to Chapter 7 in Local Case
Sometimes the court will decide which type of bankruptcy you are eligible for, as is the case in the story below. If you have questions about bankruptcy,
contact the Malaise Law Firm to get answers from a
Houston bankruptcy lawyer.
Two owners of a historic but damaged inn are fighting to keep their beloved property, but a state representative is working equally hard to reclaim it.
After a damaging fire swept through the inn, the property started struggling both financially and structurally. While the inn was in both of the owners' names, one was unable to prevent the court from turning his Chapter 11 bankruptcy into a Chapter 7 bankruptcy plan.
Under Chapter 11 bankruptcy, the owner was able to keep the inn running without being harassed by creditors; under the new bankruptcy plan, the inn is in danger of being liquidated along with the owner's additional business assets.
Not wanting a court trustee to gain complete control of the inn, the other owner is now saying that he wants to purchase the inn. Since he is no stranger to bankruptcy filings - he filed for Chapter 7 protection in the past - he said he is ready to fight for the property.