Bankruptcy Alternatives

Illinois Bankruptcy Alternative Attorneys Serving DuPage, Kane, Kendall and Will Counties

When a business is in financial trouble it has several options available to it. Many businesses choose to file for bankruptcy protection under Chapter 7 or Chapter 11 of the federal bankruptcy code. Bankruptcy protection prevents creditors from collection attempts while you either liquidate (and close) your business or reorganize your business. For some companies, however, a bankruptcy alternative might be a better option. At Springer Brown, our attorneys have 20 to 30 years of experience handling business bankruptcy and alternatives to business bankruptcy.

Types of Business Bankruptcy Alternatives

There are two main types of business bankruptcy alternatives. They are:

• Assignments for the benefit of creditors (Assignments) – An alternative to Chapter 7 bankruptcy, this allows a business to liquidate its assets and repay its creditors without operating under federal law.
• Workouts – An alternative to Chapter 11 bankruptcy, this allows a business to come to a consensual agreement with its creditors outside of the bankruptcy courts.

When to Use Bankruptcy Alternatives

Knowing when to seek a traditional business bankruptcy and when to pursue a bankruptcy alternative can be very challenging, as there are numerous factors to consider. For example, you need to determine if your business could remain open following a reorganization, or if you are forced to close your doors. That’s why it’s important to choose an attorney who is experienced in all types of business debt solutions.

At Springer Brown, we will look closely at your company’s unique financial circumstances and tailor our recommendations to your specific circumstances.
If your business is in serious debt and you need help repaying it, call us today to set up a free initial consultation.