The Texas Plan of Reorganization for Small Business Under Chapter 11 is a form of bankruptcy protection available to small businesses, sole proprietors and partnerships in the State of Texas. It allows a business to reorganize its debts and restructure its operations in order to remain economically viable. The Texas Plan of Reorganization is similar to a Chapter 11 bankruptcy filing, except it is restricted to small businesses. The Texas Plan of Reorganization for Small Business Under Chapter 11 includes several key features: 1. An Automatic Stay of Creditor Actions: A creditor cannot commence or continue any legal action against the debtor while the plan is in effect. 2. A Disclosure Statement: This statement includes information such as the debtor's current financial condition and the proposed plan of reorganization. 3. A Confirmation Hearing: The court holds a hearing to determine if the confirmed plan is fair and equitable and should be approved. 4. Assumption and Rejection of Contracts and Leases: The debtor can assume certain contracts and leases and reject others in order to maximize the value of the reorganization. 5. Payment of Creditors: The debtor must make payments to creditors in accordance with the confirmed plan. 6. Modification of Executory Contracts and Unexpired Leases: The debtor can modify certain contracts and leases in order to reduce the burden of the debt. Different Types of Texas Plan of Reorganization for Small Business Under Chapter 11: 1. Liquidation Plan: This type of plan involves the liquidation and sale of the debtor’s assets in order to pay off creditors. 2. Reorganization Plan: This type of plan involves restructuring the debtor’s debts and operations in order to remain economically viable. 3. Debtors-in-Possession Plan: This type of plan allows the debtor to remain in control of their business while paying back creditors over time. 4. Equity Security Plan: This type of plan involves the issuance of equity securities to creditors in order to pay off the debt.