Restructure Your Operations Through Business Bankruptcy
Illinois businesses can fall on hard times just like consumers can. When a business owner finds their company unable to pay its bills, bankruptcy can be an opportunity to reorganize their company’s finances and pay creditors back through an agreement they can handle.
Our attorneys at Springer Larsen Greene, LLC, are here to help your business manage its debts so that you can focus on what’s important.
Chapter 7 Bankruptcy
If your business is in crushing debt and you are considering closing its doors, Chapter 7 bankruptcy may be warranted. From sole proprietorships to large corporations, we can help liquidate your business assets in an orderly fashion.
Chapter 11 Bankruptcy
If your business is experiencing significant financial difficulties but you don’t want to give up what you’ve worked so hard to build, Chapter 11 bankruptcy can be a viable option. Also known as reorganization, Chapter 11 bankruptcy allows businesses to repay debts to creditors over time as outlined in a reorganization plan.
Other Business Bankruptcy Options
While Chapter 7 and Chapter 11 are the most common forms of business bankruptcies, other options exist for businesses that face unique financial situations. A couple of those include:
- Subchapter V: A newly created bankruptcy option under Chapter 11 that allows small businesses to respond to their outstanding debts quickly and more efficiently than they could in a standard Chapter 11 proceeding
- Chapter 12: Helps family farmers or family fishermen in tough financial situations repay all or a portion of their debts.
Additionally, court examiners, although not typically employed in a business bankruptcy, do sometimes have a beneficial role for the debtor. Speak with one of our attorneys to understand which options may best fit your circumstances.
Bankruptcy Alternatives
Your business doesn’t have to resort to bankruptcy if it’s facing financial issues. Here are a few options you may have depending on your circumstances:
- Assignments: If your business is distressed and you plan to liquidate it, Chapter 7 bankruptcy is not your only option. An “assignment for the benefit of creditors” is a voluntary alternative to bankruptcy for debtors who are willing to assign their business assets to one or more creditors.
- Workouts: If your business is in trouble and facing significant debt, you may be able to turn things around through an out-of-court workout. Workouts operate similarly to Chapter 11 bankruptcy. In a workout, a business works directly with creditors to solve its financial problems outside of bankruptcy court.
- Receiverships: These are court-appointed resources that can help creditors recover defaulted funds while helping the business avoid bankruptcy.
- Business litigation: Bankruptcy is not generally considered a matter for litigation, even though attorneys handle bankruptcies in court. A bankruptcy case, however, can require litigation if there are lawsuits pertaining to the case. While lawsuits are not typically a part of bankruptcy proceedings, they are far from rare.
Reorganize Your Business Finances Today
However you decide to handle your business’s financial struggles, we can guide you throughout the entire filing process. Wish to speak with one of our Wheaton-based lawyers? Call us at 630-912-5871 to set up a consultation.