When Congress passed bankruptcy protection laws, they did not forget business owners. If your business owes more than $1,081,400 in secured debt or more than $360,475 in unsecured debt, you may qualify for Chapter 11 bankruptcy protection. Like Chapter 13 for individuals, Chapter 11 is a debt repayment plan that lets a business restructure debt and create a plan to stay in operation.
If your business is drowning in debt, call a lawyer at Thinking Outside the Box, Inc., in Warrenville, Illinois, for a free initial consultation. We will sit down with you in a face-to-face meeting where you can explain your situation and ask questions about potential reorganization plans. We have helped many businesses emerge from Chapter 11, and we are confident we can help you, too.
How Chapter 11 Bankruptcy Can Help You
There are many benefits to Chapter 11 business bankruptcy:
- It gives you time to catch your breath and get relief from creditor harassment while you’re putting together a reorganization plan
- It allows you to pay back certain creditors less than 100 percent
- It allows you to pay back overdue income and payroll taxes without interest
- It allows you to strip off some IRS penalties
- It allows you to pay back the IRS over time at better terms than dealing directly with the IRS
- It allows you to modify collective bargaining agreements with unions
Chapter 11 Bankruptcy Details
If you file for Chapter 11 on behalf of your small business, you will have between eight to 18 months to repay debts. The Court must approve the reorganization plan presented to the creditors. Filing for Chapter 11 gives you the time you need to restructure debt, and it lets you stay in control of day-to-day operations. A trustee of the court does not control your assets.
A Warrenville Chapter 11 bankruptcy attorney at our firm can help you prepare a financial statement to the creditors, monthly reports to the court, and help ensure that quarterly payments are made to the U.S. Trustee.
More Than 124 Combined Years of Legal Experience
Our founding attorney, Jon Noel Dowat, has worked in finance his entire career. Before going into private practice in tax and bankruptcy law, he worked as a financial planner and accountant for 18 years. Most of our attorneys are also Certified Public Accountants and are very familiar with the needs of businesses like yours.