As the housing economy across the country is struggling to regain its former grandeur, developers left and right have been filing for bankruptcy.
One such developer in Wichita was forced to file for Chapter 7 bankruptcy this week after several of his projects went belly up. In the papers filed at the Wichita bankruptcy court, he claimed liabilities of $500,000 to $1 million with assets of $500,000 to $1 million. Under this type of bankruptcy, the filer must show the court that he will liquidate his assets in order to pay off debts.
In most cases, Chapter 7 bankruptcy cases that are tied to business endeavors will force the business to shut its doors forever. The liquidation of assets will be handled by a court-appointed trustee that collects any profits and gives them to a list of creditors. Once the secured creditors have received their share of the profits, the rest of the debts, usually unsecured debts, will be dropped completely.
Going through Chapter 7 in Illinois? Get legal help now by contacting Bizar & Doyle, LLC to enlist the guidance and services of one of our
Chicago bankruptcy lawyers.