When your business is in trouble, you may be considering filing for a business bankruptcy in Naperville, Illinois. Before you consider this step seriously, there are several aspects of business bankruptcy that you will need to consider. It’s possible that it would not be a useful step in your situation, depending on what kind of circumstances your business is in. Or, conversely, it could be the best decision to make given your current business financial position.
Your options depend upon what kind of business you operated. If you are interested in filing business bankruptcy in Naperville for a corporation, partnership or limited liability, it is possible to file for bankruptcy without having to file for your own finances – unlike in a proprietorship. If you have a proprietorship, then you will have to file bankruptcy personally; your business is regarded as one of your personal assets.
An investigation into the failure of your business is in order before you decide how to proceed with a business bankruptcy in Naperville. If the problem is systemic and doesn’t have anything to do with funds – in other words, if your business if failing because there isn’t a market for your goods or services, or because you are just not making enough of a profit, reorganizing your business in bankruptcy may feel like a great way of starting over, but it isn’t going to solve your problems. It might be a better idea to liquidate. If, however, your business is suffering primarily because of suffocating debt which prevents continued successful operation, clearing the debt to start over could give new vitality to your business and be a good reason to reorganize.
Bankruptcy for reorganization is basically a bargain whereby in return for bankruptcy protection your business become fully transparent and lets both the court and creditors know its financial situation completely on a month to month basis. Your business will also act as fiduciary to its creditors rather than to shareholders. For most business owners, this type of agreement ultimately fails due to the lack of a specific plan to improve the financial situation.
Liquidation is often a better option in small business situations, and allows business owners the option of eventually starting over as a brand new entity. Other options include a Chapter 11 or Chapter 13 business bankruptcy in Naperville could allow you to sell the business as well as some of its assets without completely liquidating or committing to reorganization, possibly allowing employees to continue working under new ownership.
At Trepeck Bane, P.C., d/b/a Chicago Debt Solutions, we guide you through the entire Chapter 7 or Chapter 13 business bankruptcy in Naperville, IL and throughout the Chicago metro area. Our dedicated attorneys provide individualized and compassionate representation when you need it most. Visit us online at www.chicagodebtsolutions.com/ or call us at 312-445-9106.
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