Business Bankruptcy

Illinois Business Bankruptcy Attorneys serving DuPage, Kane, Kendall and Will Counties

A lot goes into making a business a success. Unfortunately, not all businesses are able to make it work. This is truer than ever in this troubled economy. If your business is having trouble paying its debts, bankruptcy may be necessary. The attorneys at Springer Brown are experienced in all types of business bankruptcy. Our attorneys have decades of experience working with businesses of all sizes. Whether you are looking to close your business or restructure your debt to remain open, we can help.

Types of Business Bankruptcy

There are two main types of bankruptcy available to businesses:

• Chapter 7 bankruptcy - Also called liquidation, in Chapter 7 the assets of a business are sold to repay creditors, bondholders and stockholders, and the business is closed.
• Chapter 11 bankruptcy – Also called reorganization or restructuring, in Chapter 11 the business creates a reorganization plan to handle creditors, and a court-appointed trustee oversees the plan. Creditors can vote on the plan, and the court must approve it. The business can remain open during Chapter 11.

Bankruptcy Alternatives for Businesses

Filing for bankruptcy subjects a business to the supervision of the courts. In some cases, it is possible to avoid this by pursuing an alternative to bankruptcy. There are two main types of business bankruptcy alternatives:

• Assignments of the Benefit of Creditors – An alternative to Chapter 7, “assignments” is a non-judicial form of business liquidation. In some cases choosing to liquidate via assignments can equal cost and time savings.
• Out-of-court Workouts – Essentially an out-of-court version of Chapter 11 bankruptcy, a business comes to an agreement with creditors for how to turn the business around and repay some or all of its debts. A workout can be less expensive in the long-term for a business and may include more creative terms than a Chapter 11 proceeding.

If your business is in financial distress, contact us at Springer Brown to discuss your options. We will take a full accounting of your company’s financials to determine what your best options are.