Businesses and Chapter 13

If you own a business and are in danger of financial ruin, you could qualify for Chapter 13 bankruptcy.

To begin, your attorney will file a voluntary petition, a schedule of liabilities and assets, a schedule of income and expenditures, along with other related documents. You must also have access to your last three years of tax filings, proof of meeting the pre-filing credit counseling requirement and proof of income. 

Once you have filed your petition an automatic stay will take place. This temporary injunction prevents creditors from harassing you, stops all credit collections and foreclosure or repossession proceedings. This is a serious legal action that, if violated, could result in you collecting damages from collectors. 

Twenty to forty days after you file the petition, you will be asked to meet with your trustee and creditors. You will be asked to bring your social security card, a photo ID and any additional documents that your trustee requests. Within the next few months, you are expected to create a Chapter 13 bankruptcy reorganization plan.

Contact us to learn more about Chapter 13 by speaking with a Chicago bankruptcy lawyer.