Small Businesses May Opt for Chapter 11

Filing for business bankruptcy can be a nightmare if you do not know which Chapter to file under. Based on U.S. bankruptcy law, most small businesses will benefit from filing under Chapter 11 bankruptcy.

This type of bankruptcy allows you to keep your business open and running, rather than selling off your assets through Chapter 7 bankruptcy. Under this type of bankruptcy, you will need to present a reorganization plan to the court that shows how you intend to pay your debts. However, there are certain requirements that you need to meet in order to be eligible for Chapter 11 bankruptcy.

For example, you will need to show proof of receiving credit counseling prior to filing for bankruptcy. This is required in any bankruptcy case, no matter if the filer is an individual or business. If you have filed for bankruptcy within 180 days and had your case denied or dismissed, you will not be able to file again. You will need to let 180 days pass between bankruptcy filings in order to be considered as an eligible candidate for bankruptcy protection.

Do you have questions related to business bankruptcy in Illinois? Now is the time to contact a Chicago business bankruptcy attorney who can address your questions as well as provide you with information and resources.