If your business is financially struggling, it is important to explore the various Chicago Debt Solutions as soon as possible. Business Bankruptcy in Chicago is unfortunately not something a business owner wants to consider; however, filing a business bankruptcy may be the solution to help you get a fresh, debt free start. The first step is to meet with a bankruptcy attorney to discuss which bankruptcy chapter is best suited for your needs. Chapter 7 Business Bankruptcy in Chicago is also known as a liquidation. This chapter of bankruptcy is the best type for sole proprietors, corporations, individuals and limited liability companies who do not want to restructure their debts.
During a chapter 7 bankruptcy all of the business assets are sold in order to gather enough capital to repay the creditors. Chapter 11 Business Bankruptcy is an option for those who want to continue operating their business, but with a reorganization of the business debts. Filing chapter 11 is often a complex and requires the assistance of a bankruptcy attorney to help with the filing as well as a money management program. Chapter 11 bankruptcy is available for corporations or sole proprietors and in most situations you will be assigned a court appointed trustee to monitor the business operations after filing for bankruptcy Chapter 12 bankruptcy is a bankruptcy option that is specifically designed for family fishermen or family farmers.
Under a chapter 12 bankruptcy your debt is reorganized and you are given a payment plan that typically lasts between 3 to 5 years. Chapter 13 bankruptcy is similar to a chapter 11, in that you are allowed to reorganize the business debts. There are specific requirements that must be met before you can file a chapter 13, but an attorney will be able to help determine if you qualify for filing this chapter. Chapter 13 bankruptcy is the most common filed bankruptcy chapter for business owners who have personal assets that are connected to the business.
When filing a chapter 13 and your personal assets are connected to the business, it means you may be able to prevent the loss of large assets, such as your home.It is important to Hire A Bankruptcy Attorney to help you with the bankruptcy process. An attorney will be able to review your debts and assets to determine whether a debt reorganization or a liquidation of your debts is best suited for your specific needs. You can also visit their Google+ page for more information.