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Illinois Chapter 11 Attorney | Kane, DuPage, Kendall Business Bankruptcy Lawyer

Business Chapter 11 Bankruptcy

Business Chapter 11 Bankruptcy Attorneys Serving DuPage, Kane, Kendall and Will Counties

If your business is experiencing serious financial difficulties, but you are not ready to walk away, Chapter 11 bankruptcy might be a viable option. Also known as reorganization, in Chapter 11 bankruptcy a business repays debts to creditors over time as outlined in a reorganization plan. Chapter 11 bankruptcies can be exceedingly complex depending on the size of the business, the extent of the debt and other factors. At Covey Bankruptcy we are skilled in handling all types of Chapter 11 bankruptcies.

The Chapter 11 Bankruptcy Process

When a business files for Chapter 11 bankruptcy, an automatic stay preventing collection attempts is immediately initiated. The business then has to file a reorganization plan specifying how it intends to repay its debts over time. A meeting is held with the creditors, and the creditors vote on whether to accept the reorganization plan. Finally, the court has to approve the reorganization plan. This is a long process that can take months or even years to complete. During this time, the business is under federal protection from its creditors.

Benefits of Chapter 11 Bankruptcy

The primary objectives of Chapter 11 bankruptcy are to restructure a troubled business to be more successful following bankruptcy and to allow that business to repay its debts while remaining operational. This benefits both the business and its creditors because it allows the business to use ongoing revenue to repay debts. In many cases creditors receive greater repayment under Chapter 11 bankruptcy under Chapter 7 bankruptcy, or liquidation.

At Springer Brown, we represent companies of all sizes in business bankruptcy. Our firm also includes several bankruptcy trustees (for Kane County, DuPage County and Cook County), which offers our attorneys added insight into bankruptcy proceedings. If your business is having trouble repaying its debts, contact us today to discuss your options. We will examine your company’s financials to determine if Chapter 7 bankruptcy, Chapter 11 bankruptcy or a bankruptcy alternative might be the solution.

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