Bankruptcy itself is not an enemy to your finances, and you should not see it that way—unless you never want to get out of debt. Contrary to the widespread opinion that filing for bankruptcy will hurt you, Chapter 11 is not the end of the world, nor does it make you forever ineligible to receive credit. Bankruptcy status is a way to find financial relief to overwhelming debt, so that you can build a brighter financial future. At some point in time, many people experience financial woes. If you find that there is no end to your financial struggles that you can manage, filing for bankruptcy should be considered as finally taking charge of your finances.
What is Unique About Chapter 11?
Unfortunately, Chapter 13 and Chapter 7 bankruptcy laws do not always provide businesses with the financial relief they need. Commonly referred to as “the reorganization chapter” of the bankruptcy code, Chapter 11 allows you to reorganize your debt and keep most of your assets. Through the sale of certain assets (mostly of your choosing), you are allowed to use the profits to pay down your debt and refinance current debt. Filing for Chapter 11 bankruptcy is typically more beneficial for businesses; however, individuals can also file for Chapter 11 bankruptcy.
How can Chapter 11 Provide Relief?
Filing a Chapter 11 petition will protect you from the aggressive habits of debt collectors and creditors. Chapter 11 status ceases creditors from continuing their collection efforts, from threatening you with lawsuits, or from filing liens against your assets, and foreclosing on your home.
Finally, corporations, partnerships, and limited liability companies (LLC) cannot use chapter 13 to restructure their debt and must cease business operations if they decide to file a chapter 7 bankruptcy instead. In other words, corporations, LLCs, and partnerships who file for relief under Chapter 7 or Chapter 13, must end its operations upon the filing of the case, thus a chapter 11 is the best option, if you want to stay in business.
Where can I Find a Bankruptcy Lawyer?
At Newland & Newland, LLP, our goal is to help struggling business owners with filing Chapter 11 bankruptcy and to make it a positive experience for you and your loved ones. If you are wanting to file Chapter 11 bankruptcy, contact us at 312-981-0409 for a complimentary evaluation of your case, or visit us online and complete the consultation form. If you need assistance with business or personal debt relief in Arlington Heights, Libertyville, Chicago, Fox River Grove and Itasca, contact an Illinois bankruptcy attorney at Newland & Newland, LLP.
(image courtesy of Christin Hume)