Chapter 11 Business Bankruptcy Archives

How does Chapter 11 bankruptcy work?

Whether you have filed for Chapter 11 bankruptcy on your own merit or your creditors have submitted a petition for bankruptcy on your behalf, you may be wondering what the process entails. If you are going to file for bankruptcy in Illinois, you will need to submit several documents. This includes a list of all your assets and liabilities, your current income, a statement of financial affairs and any contracts and leases you may have. You must also take a credit counseling course before the bankruptcy will be considered.

What is a debtor in possession in a Chapter 11 bankruptcy?

Whether you run a corporation in Illinois, are the sole proprietor of a business or are involved in a partnership, you may run into tough financial situations where you are forced to consider bankruptcy as a way to clear your debt. Chapter 11 bankruptcy is designed to help these types of businesses reorganize debt in such a way that it can be repaid in a timely manner, and the company can continue on with its business endeavors. When filing Chapter 11 bankruptcy, you may actually become a debtor in possession, which requires you to take over many of the responsibilities associated with the case.

Know the key components of a Chapter 11 reorganization plan

Businesses in Illinois experiencing financial turmoil may want to consider filing for Chapter 11 bankruptcy. At Ledford, Wu & Borges, LLC, we know how important it is to make the right decision when considering your company’s wellbeing. We have a history of helping people navigate the bankruptcy process, including putting together a reorganization plan.

Does the bankruptcy court need to approve my business decisions?

When your business files for bankruptcy in Chicago, it is important for you to know how that could affect your operations. In most cases, you will be able to proceed as normal, and you will conduct business as a debtor in possession. In some cases, the court will appoint you a trustee. However, this is usually reserved for situations in which there is sufficient cause to do so, such as if the court has observed the following: 

Business bankruptcy and personally guaranteed loans

Many people who started their Cook County business from the ground up may have personally given their guarantee in order to obtain credit or financing. However, now that business is financially failing and bankruptcy is the only option left to try to save it. Many people believe that the bankruptcy will eliminate their personal liability concerning that debt but this may not be the case.

What are the requirements for filing chapter 11 bankruptcy?

Businesses in Illinois that are struggling financially may find that filing for chapter 11 bankruptcy is the best option. Generally, partnerships, corporations and limited liability companies are the parties that choose this filing, though individuals may be able to depending on their circumstances.

What does it mean to reorganize in a Chapter 11 bankruptcy?

For some businesses, filing for a Chapter 11 bankruptcy is the best option for maintaining operations. While most entities applying for this option will be either partnerships, limited liability companies or corporations, it is possible for you to file Chapter 11 as an individual.

Millions on the line as Chicago judge hears bankruptcy case

Timing is everything, especially when it comes to filing bankruptcy. In Illinois and across the country, the date of filing for Chapter 11 and other types of bankruptcy plays an important role in determining when creditors can no longer collect funds. As a recent incident demonstrates, a discrepancy over just a few days can cost a company millions of dollars.

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