There is no denying the effect the 2007-08 economic downturn had on businesses everywhere. Trying to stay alive has been difficult even a few years out, and some owners are looking for ways to get out from underneath their debt loads. Chapter 11 bankruptcy is a viable option for businesses of all sizes to liquidate their operations or keep the doors open until things turn for the better. Before making a final decision on what route to take, talk to a lawyer about Chapter 11 Bankruptcy in Marion, IL, about what makes sense.
Chapter 11 has provisions in place that make it easy for a small business to make decisions that are beneficial. What this means is that a small business owner doesn’t have to fear the idea of Chapter 11 taking everything away and leaving them with nothing. Instead, this area of bankruptcy gives the owner the ability to negotiate with creditors to achieve more favorable terms. Sometimes, this is all the breathing room that is needed to get through a rough spot. The business is still viable, but can’t make it through an extended rough period and take care of vendors as usual. Being able to repay debt on less stressful terms can be that lifeline to make it through the bad times.
There is no denying that bankruptcy is complicated for someone who’s filing a Chapter 13 Bankruptcy in Marion, IL, which is mainly used for consumers. A business has to list all of its assets, supplies, existing debts, even the payroll for employees. There is a lot of work to be done before getting to a point where the petition is ready for filing. The court wants to see everything, and that means everything, that comprises the business. All assets such as property, machinery, equipment and supplies have to be listed. There is no hiding of anything if the business owner wants to be able to restructure or be free of debt.
A business bankruptcy is best done with the help of a lawyer in order to satisfy the court. The lawyer is intimately familiar with the bankruptcy laws and uses them to assess the business situation and give an idea of the possible or potential outcome.
