Illinois Small Business Debt Relief Attorney

The current economic environment has small businesses suffering with debt just as much as individuals. Luckily, small businesses also have the option of filing for bankruptcy to relieve their debts. While the bankruptcy process for small businesses is similar to the process for individuals, there are some notable differences. If your business is struggling with debt, it is wise to consult a knowledgeable attorney for advice and counsel.

Bankruptcy Options for Small Businesses

How your business is structured plays a large role in what types of bankruptcy are available to you. If your business is a corporation, Limited Liability Company (LLC) or partnership, the business may file for Chapter 7 or Chapter 11 bankruptcy independently. If your business is a sole proprietorship, you may file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy. Proprietorships are seen as extensions of their owners, so owners must also file for bankruptcy.

The Right Type of Bankruptcy for Your Small Business

Choosing which chapter to file your bankruptcy under will depend largely on the cause of your business’ financial problems. If your business is in debt because the market no longer exists for your product or services or some other inherent problem, reorganizing under Chapter 11 or Chapter 13 won’t solve the problem. In cases where the fortunes of a business are unlikely to rebound, liquidation under Chapter 7 is usually the best course. If, on the other hand, your business is suffering a temporary setback or you need to buy time to sell your business, a reorganization bankruptcy may be appropriate.

Issues surrounding business bankruptcies are complex and often require the investment of significant time and resources. To ensure you make the best decisions for your business and for your personal financial future,contact us at Northwest Suburban Bankruptcy. Located in Rolling Meadows, IL, we help businesses with bankruptcies throughout the Northwest suburbs of Chicago including Schaumburg, Palatine, Arlington Heights, Elgin, Streamwood and beyond.