In today's trying economic times many small businesses are having severe financial trouble. You may have started a business which can no longer meet its obligations. Your personal and business obligations may be so intertwined that dealing with them has become a nightmare. We have put together a "small business program" to help you and your business survive. This program may utilize a restructuring of your business and its debt, utilizing a personal and/or business Chapter 7 bankruptcy; or a Chapter 13 personal bankruptcy combined with the appropriate Chapter 7 business or personal bankruptcy.
In addition to the above approaches that help the small business owner plan for his or her financial survival, there is another solution available in the "Small Business Chapter 11". While a major Chapter 11 case (such as General Motors or Chrysler) is well beyond the means of almost all small businesses, there is a Small Business Chapter 11. Basically it functions somewhat like a large Chapter 13 bankruptcy. The secured and unsecured debt limits are $2,000,000.00 which restricts the size of business that can utilize the Small Business 11. Because of the nature of the Chapter 11, the process has additional accounting costs and is more expensive due to increased accounting, filing and legal fees. While the Small Business Chapter 11 is not for every small business you should be aware of it and what it can accomplish in formulating your financial plan for your business in these troubled financial times.
Once again knowing what is available when your business and personal finances are in trouble can help answer questions such as "How can I stop business financial problems from spilling over into my personal financial situation?"; "What do I pay first?"; "How do I save my business?"; "When do I close up shop?"; "How do I deal with my landlord?"; "How do I deal with my bank?"; "What do I stop paying?"; "What happens to my equipment, my inventory?"; "What happens to my employees?"; and "How are my business and personal finances tied together?". Most importantly, "what happens to me and my family, how do I relieve the stress, stop the phone calls and law suits, and how can we get started again?"
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If you want to learn more about bankruptcy, contact our law office to schedule a free consultation with an experienced bankruptcy lawyer.
Illini Legal Services is engaged in the private practice of law and is not a public legal aid agency. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
