Save Your Small Business With A Chapter 11 Bankruptcy
Richard Fonfrias, J.D.
Chicago’s Financial Rescue & Bankruptcy Lawyer
Fonfrias Law Group, LLC
If you own a small business, you know the blood, sweat and tears you’ve put into investing and running your business. The long hours — the time away from your family — the never ending problems. But you know in the long run, it’ll all be worth it.
But then you have problems. Financial problems. Debt. Loans you can’t repay. Creditors that want their money now. You know the story.
|You could close your doors and file chapter 7 liquidation bankruptcy. But you have another alternative you may not know much about: Chapter 11 bankruptcy to reorganize your business. Here’s how it works.
Here’s How Chapter 11 Bankruptcy Can Help You and Your Business
Chapter 11 bankruptcy was designed for businesses that want to keep running but need help with their finances at the same time. You’ll find Chapter 11 reorganization bankruptcy for business debts similar to Chapter 13 reorganization bankruptcy for personal debts.
Under Chapter 11, you set out a reorganization plan, which spells out your debt and payment terms in a way your business can afford. It gives you breathing room so you can stay in business and pay off your creditors at the same time.
Misconceptions: Some business owners think Chapter 11 Bankruptcy is a long and costly process. But this isn’t necessarily true because rules within Chapter 11 benefit the small business. For example, if you are a “small business debtor” under the court’s definition, then
(1) You can submit your reorganization plan and not file a disclosure statement, which saves you time and money; and
(2) You have between 180 and 300 days to propose your Chapter 11 reorganization plan.
In bankruptcy court, to qualify as a “small business debtor”, your business must (1) be engaged in business or commercial activities, not including real estate; and (2) owe outside creditors not more than $2,566,050.
If you meet those criteria, you could be a good candidate for Chapter 11 bankruptcy, and keep your business running without liquidating your assets in Chapter 7. You’re invited to call me to discuss how I can help you keep your business going, pay off your creditors, and get your business back on a solid financial footing. You can reach me at 312-969-0730. I’ll be pleased to hear from you.