When a business decides it is time to file bankruptcy, there are a few different types in which to choose, with Chapter 7 and Chapter 13 being the most predominant. Business owners should contact a professional attorney to decide which type best fits their needs. Filing for bankruptcy is not an easy process. There are a lot of legal technicalities that require proper follow-through. Business owners in Northeastern Illinois need an experienced and expert attorney that specializes in business bankruptcy in Skokie.
Chapter 7 Bankruptcy
When a business liquidates their assets to pay for debts, it is known as liquidation. Chapter 7 is a liquidation type of bankruptcy. A court appointed trustee is named to oversee the liquidation process and makes sure that all creditors are treated equally. Assets are then sold to compensate for any fees and costs due the trustee. Once the trustee has been paid, then the remaining funds or assets are divided equally between creditors. When a Chapter 7 bankruptcy is filed, it usually means a business is not going to re-establish itself, and it is truly ended.
Chapter 13 Bankruptcy
People that are involved with a failing or failed business normally file a Chapter 13 bankruptcy. Chapter 13 bankruptcy is actually considered to be a personal bankruptcy. When Chapter 13 is filed for a business owner, it is a way to file bankruptcy and still protect personal assets. Chapter 13 provisions also allow for reorganization that is court supervised.
What You Can Expect During the Bankruptcy Process
A professional attorney that specializes in bankruptcy is able to take you through the entire process of filing for bankruptcy for a business. They are proficient at explaining what will happen, and leading you through the legal process that starts by petitioning the court and giving financial information including the list of creditors in which you owe money. Once a petition is granted, a bankruptcy trustee will be appointed to manage the process. A trustee will meet with your creditors and attempt to come to an agreement with them for the repayment of a business’ debts. If a business is going to reorganize, then creditors are urged to work with the business. Where reorganization is considered, committees may need to be organized to supervise the interests of shareholders, creditors, and employees. No matter which type of bankruptcy is filed, a skilled bankruptcy attorney will be able to confidently assist you in maneuvering through a very difficult legal process.
Chicago Debt Solutions can help you file for business bankruptcy in Skokie, IL. Skilled and experienced bankruptcy attorneys are ready to discuss your case with you when you visit their website, and make an appointment.