Business Bankruptcy | Chapter 7
Illinois Business Chapter 7 Bankruptcy Attorneys Serving DuPage, Kane, Kendall and Will Counties
Understanding Business Chapter 7 Bankruptcy
Chapter 7 bankruptcy is generally the easiest way to discharge debt. In this type of bankruptcy, also known as liquidation, a trustee takes possession of a business’ assets and uses the sale of those assets to repay creditors. Creditors are paid in order of risk, with those who took the most risk paid last. In general, secured creditors are paid first, followed by unsecured creditors, bondholders and finally stockholders. Once your case is filed, your creditors must stop all collection activities including lawsuits and wage garnishments. When your case is discharged in approximately three to four months, you will no longer be liable for any debts that were discharged.
When to File for Business Chapter 7
Often the choice of whether or not your business should file for Chapter 7 bankruptcy protection depends on how closely your (and/or your business partner’s) personal finances are tied to the company. Business bankruptcy filings can be complex issues, so it is important to hire an attorney who is experienced in handling these matters as well as any bankruptcy litigation that may arise in the course of the proceedings. Our attorneys have decades of experience handling bankruptcy cases for business of all types. Call us today to learn how we can help your business solve its debt problems.