Business Bankruptcy Lawyer in Kane County
Helping Your Business Complete the Bankruptcy Process
Is your business struggling with significant debt? If so, bankruptcy might be the best option. There are several types of bankruptcy that you can file for your business, each with different purposes and outcomes. One of the main considerations for struggling businesses is whether the business has a future of recovering from its current financial hardship, or if it should be dissolved. Our firm’s attorney in Kane County can help you navigate this difficult process and guide you toward the decision that is in your best interests.
Chapter 7 Liquidation Bankruptcy
A sole proprietor or corporation may file for Chapter 7 bankruptcy when the business will no longer operate in the future. In Chapter 7, all the business’ assets are liquidated and with any funds distributed to creditors. This form of bankruptcy almost always results in the business being dissolved to free the owner of any obligation to pay the company’s debt. If you believe your business is unlikely to recover and does not have enough assets to reorganize the debt in a new repayment plan, this is likely your best option.
Chapter 11 Reorganization Bankruptcy
In a Chapter 11 bankruptcy, a business makes an agreement with creditors to reorganize debts I in an approved repayment plan. This allows the business to resolve their debts over time without having to liquidate any assets. The process of getting the reorganization plan approved can be lengthy and requires votes from creditors and approval from the bankruptcy court.
The court must deem your reorganization plan to be fair and feasible. It must also be determined that your creditors would receive as much payment under the new plan as they would have under a Chapter 7 bankruptcy.
Chapter 13 Personal Bankruptcy
You cannot file Chapter 13 although you may be able to pursue this type of case to reorganize business and personal debts if you are a sole proprietor. This is often a wise option for business owners whose personal assets are involved with his or her business, as it protects them from liquidation. Additionally, if your business is a separate entity and you are not a sole proprietor, you can still file for Chapter 13 personally to free yourself from business obligations where you signed a personal guarantee.
Protect Your Financial Future with Our Help
Contact our firm today to learn more about the requirements and legal implications of filing for bankruptcy. Hipple Law P.C. has handled hundreds of bankruptcy cases involving small business from a simple second real property rental to home-based businesses and store fronts. We can provide you with trusted legal counsel.