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Illinois Bankruptcy Workout Attorney | Kane DuPage Kendall Workout Lawyer

Business Bankruptcy Workouts

Illinois Business Bankruptcy Workouts Attorneys

If your business is in trouble and facing significant debt, you may be able to turn things around through an out-of-court workout. Workouts operate similarly to Chapter 11 bankruptcy. In a workout, a business comes to an agreement with its creditors about how to solve its financial problems outside of bankruptcy court. At Covey Bankruptcy, we are experienced in creating and negotiating bankruptcy workouts. We work closely with our clients and always seek the most beneficial solution to financial distress.

When to Pursue a Bankruptcy Workout

In general, if you can keep agreements between your business and its creditors out of court, it’s a good idea. Chapter 11 filings can be very costly in both time and expenses, as they often take years to complete. Alternatively, workouts can be significantly less expensive, and the savings can be used to repay creditors more quickly. In addition, workout agreements can be more creative than traditional bankruptcy proceedings. Creditors can be repaid in a variety of ways including through equity infusion, alternative financing and future cash flow.

An out-of-court workout isn’t always a viable option for distressed companies, however. Creditors must voluntarily agree to a workout, and that may not happen in some cases. Unlike Chapter 11 bankruptcy, there is no mechanism to force a creditor to accept a reorganization plan. Additionally, when given the opportunity to meet discuss a proposed workout, creditors may decide to work together to force a company into involuntary bankruptcy. At Springer Brown, our attorneys are skilled in evaluating a company’s debt situation and choosing the most advantageous method for reorganization.

If your business is facing mounting debt and unable to dig out on its own, call us to discuss your options. Our firm can help you determine if business bankruptcy or a bankruptcy alternative is the appropriate solution. We offer free initial consultations to examine your company’s financial circumstances.

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