A business can suffer a loss of income for many reasons, but they are insignificant when it comes to a lack of money. There can come a point where the business owner is picking and choosing what bills to pay while making sure that employees get their payroll. In a situation like this, the pressure can very intense, and make the owner feel like they are in a corner, wondering what to do next. This is most likely the best time to file a Business Bankruptcy in Schaumburg, and begin the process towards resolving payments to creditors.
A Business Bankruptcy in Schaumburg, also known as a Chapter 11, does not necessarily mean that the company has to close its doors. It may be that the loss of business is a temporary one, and there is a need to gain some space until business improves. Or it may be that the business won’t survive in its current version and needs to reorganize into a new configuration. Business bankruptcy offers the owner the ability to achieve goals without having to struggle against creditors making demands.
When a business enters into bankruptcy, it has to give the court a proposal for how it will handle repaying creditors. This is where the term “paying pennies on the dollar” comes into play. The business makes an offer of how much it can afford to pay the outstanding debt to each creditor, which is usually much less than what is owed. The creditor can accept or reject the proposal, which puts it at risk of not getting anything in the end. Once the proposal is put forth, approved and accepted by creditors, the business can then move forward. This may mean liquidating assets to pay off the creditors, or using cash on hand to pay out the agreements.
Contact Law Offices of Trepeck Law Group to set up a consultation with a lawyer about filing a business bankruptcy. It’s easier to make an informed decision about taking a business into insolvency after discussing the options with a lawyer. Knowing the options that are available for the company can make an owner feel better about what to do. For more information contact Chicago Debt Solutions. You can follow them on Google+.
