There are different types of proceeding for your business and for your individual proceeding as well. Chapter 7 bankruptcy, Chapter 13 bankruptcy, and Chapter 11 bankruptcy are all used in business proceedings in terms of discharging debts. In Chicago, these types of bankruptcy are going to be varied based on what you need them to do.
Chapter 7 bankruptcy is a proceeding in which the assets of the business are going to be liquidated. With Chapter 7 bankruptcy all the assets that are part of the business are liquidated and then the balance is applied to the debts that are outstanding before the final debt is discharged. This is most common in cases where the business is being dissolved entirely and where it is not going to be working or functioning after the fact. Finding a good law firm in Chicago can help you to handle your Chicago proceeding as quickly and easily as possible.
With Chapter 7 bankruptcy you are going to be returning items that can be returned, selling off items and properties that you own, and then working to make sure you are repaying what you can before the proceeding goes on. With Chapter 7 bankruptcy it is always best to make sure it is the right option and that you are not going to be disappointed with the outcome.
With Chapter 13 bankruptcy, the most common type of business bankruptcy for those that want to keep running and that want to simply reaffirm loans and move things around, this is also referred to as adjustment of debts for individuals that have a regular income. This is often used for sole proprietorship businesses as when a sole proprietorship is set up, the owner and the business become one. Chapter 13 is often used when the goal is not to completely disband or close the business, but rather to simply reorganize it and change it around a bit. With this proceeding you can reaffirm some debts, you can change your debt, and you can create a repayment plan to help keep your business afloat.
The last type that is involved with the business is Chapter 11 bankruptcy. With Chapter 11 this is also referred to as reorganization. This can be used in terms of businesses that are partnerships, to begin with, and then are dissolving and the business is staying open and operating. With this type of proceeding you are going to reaffirm certain debts, liquidate others, and then also are going to help to keep the business running under a trustee to make sure that the business is going to keep working well and keep from incurring more debt. This also helps to dissolve partnerships and helps to release someone from their part in a business. With the help of the right Chicago lawyer or law firm, you can get the proceeding underway quickly and easily.