Every year, entrepreneurs and groups of investors open up businesses hoping for the best. At the same time countless other businesses are closing down and hanging on by a thread. This is the reality many entrepreneurs and business owners have to face. The following is vital information you’ll need if you’re a business about to face bankruptcy.
The one thing you’ll have to understand is that bankruptcy isn’t a miracle solution to your business’ money problems. Bankruptcy doesn’t simply wipe away the mound of debt you created from the countless loans you’ve taken out and credit lines you’ve opened. Bankruptcy is meant to help you better manage this debt, and help lessen the pressure that’s put on by creditors and lenders. Talk with a Bankruptcy Attorney in Marion, IL to see if bankruptcy is the right option for you before you file.
It’s also important to know which type of bankruptcy is best for you and your business. Chapter 7 bankruptcy is a very common option that most people turn to. Chapter 7 bankruptcy involves liquidating your assets in order to pay off the unsecured debt that you owe. This option is for those with very little disposable income. Those with too much money may not qualify for this option.
You’ll be appointed a trustee who will be responsible for selling all of the property you have that isn’t exempt from these proceedings. If the selling of the non-exempt property isn’t enough to clear your debt, or you don’t have any non-exempt property, it’s possible that your creditors will receive nothing. Speak with Business Bankruptcy Lawyers in Carbondale, IL to see if you qualify for this option.
Chapter 13 bankruptcy is for those businesses that have too much disposable income to file for Chapter 7. These businesses tend to be somewhat healthy financially, but they still owe a lot of money. Chapter 13 essentially helps these businesses manage both their income and their debt. You’ll be able to sit with your lenders and creditors and determine the best repayment plan for you. A portion of your income will them be used to gradually clear your debt. Discuss this option with one of the Business Bankruptcy Lawyers in Carbondale, IL to see how this can be arranged.
