Which Business Bankruptcy is Better for You?
The backbone of what makes a society thrive is the business organization in various communities. In more ways than one, enterprise stimulates the economy. It usually takes a couple of years or even up to five years before new entrepreneurs can start to see a genuine profit in their business. On the opposite side of that statement rests the businesses that struggle and are in the failing mode. Sometimes businesses find themselves in a “belly up” position and have to file bankruptcy. A Business Bankruptcy Attorney in Maywood IL has helped many businesses and has tips on which type of bankruptcy a business should use if needed.
When businesses are unable to meet their financial obligations or are way in over their head with multiple loans, there are a couple of bankruptcy options that can help them get a fresh start: the Chapter 7 liquidation bankruptcy and the Chapter 11 business reorganization. In the first type, usually the business has reached a point where it is going to close down. In the latter type, the business is struggling, but wants to find a way to continue operation.
Looking at the Chapter 7 filing more closely, the goal is to close the business down completely and liquidate all assets to be distributed among the creditors. This process will be handled by a bankruptcy trustee. The shareholders of the company will not be responsible for the costs of this liquidation. The Chapter 7 bankruptcy for businesses is very similar to the Chapter 7 used for individuals. The Chapter 11 bankruptcy allows for businesses to set up some type of legal payment arrangement to pay their creditors and remain in business. The process can be quite complicated.
The Law Offices of Mark R. Schottler & Associates have been providing legal solutions for clients in the Maywood, Illinois area for several years. The senior attorney has been practicing law pertaining to commercial lawsuits and bankruptcies for almost 20 years. If your business is in trouble and you need a Business Bankruptcy Attorney in Maywood IL, you can find answers at the law offices. Contact Schottler and Associates.