The Option For Your Business To File For Chapter 11 Bankruptcy In Marion, IL

by | Feb 19, 2014 | Lawyers & Law Firms

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There are many businesses that have to face the reality that the way they do business isn’t going to help them to be successful. In fact, many businesses may get to a certain point financially where they have to consider bankruptcy. While there are Chapter 7 bankruptcies from people who are dealing with difficulties in their personal finances, Chapter 11 and Chapter 13 bankruptcies are typically reserved for businesses. Before you consider filing for Chapter 11 Bankruptcy in Marion, IL or Chapter 13 Bankruptcy in Carbondale, IL, you’ll need to first understand a bit about these types of bankruptcy proceedings to determine which one is right for you.

If your business has no chance of succeeding and your debts are simply too high to adequately pay off, then chapter 13 bankruptcy is your best option. This is a way to liquidate whatever assets you have in the business, repay creditors, settle those debts through the courts and walk away from the business altogether. However, there are certain circumstances where Chapter 11 is a better option for businesses.

If the business feels that they can be successful coming out of bankruptcy, Chapter 11 is the best type of bankruptcy to file for. In addition, if the business’s assets to be liquidated are less than the potential profits the business could have if they are able to financially reorganize, Chapter 11 is the type bankruptcy that will be called for. This allows a business to restructure their finances and with the court’s assistance, work out a repayment plan to their creditors in order for the business to come out of the bankruptcy as a viable company, earning money through the selling of products or services and with the court mandated repayment plan, creditors can be repaid and the business can live to see another day.

This is an extremely complicated process so if your business, whether it’s a small business, medium-size business or large business is considering filing for Chapter 11 Bankruptcy in Marion, IL, your business is going to need a lawyer handling these proceedings. With a lawyer who has seen various different businesses file Chapter 11, their experience in this matter will help guide your company through the process in order to come out of the bankruptcy financially healthy and prepared for future success.

 

 

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