Experienced Chicago, IL Chapter 11 Bankruptcy Lawyer
Chapter 11 Bankruptcy Attorney
What do the Chicago Cubs and General Motors have in common? They both filed Chapter 11 Bankruptcy as part of a corporate reorganization and soon became even more profitable than they were before. Thousands of companies share a similar story. Whether it was due to overexpansion, an economic downturn or simply unfortunate circumstances, these firms reorganized under the Bankruptcy Code. Your corporation, partnership or sole proprietorship can do the same thing with help from an experienced bankruptcy attorney in Chicago. This procedure may also be an option for individuals and families who have unique financial needs.
For over 25 years, the Law Offices of Thomas W. Drexler has represented individuals, families and businesses in the Chicagoland area. We routinely handle complicated bankruptcies, and we are equipped to help you succeed. That means we can represent you through all phases of a bankruptcy, from preparing and filing the petition, to working with creditors and any creditor’s committee, to preparation and approval of the plan and completion of the case .
Chapter 11 cases are somewhat similar to Chapter 13 cases in that a repayment plan is typically proposed. Corporations are not eligible to file for Chapter 13, and are required to file Chapter 11 if they desire to stay in business. Also, individuals with debt over a certain limit may be required to file for Chapter 11, instead of Chapter 13. Chapter 11 cases, due to the way they are administered by the court and due to various complicated requirements, are much more time consuming and expensive than Chapter 13 cases.
A corporation, or business owner, will often file Chapter 11 to stop (or “stay”) an action by a lender or creditor which would have the effect of crippling or destroying the business. For example, a corporate loan might be in default and the lender may be proceeding to repossess the corporation’s equipment. Without its equipment, obviously, the corporation cannot continue to make its product anymore, or continue to run the business, and would soon be out of business. The Chapter 11 filing will hopefully give the corporation time to work out a plan of reorganization which will appropriately deal with its creditors and allow the corporation to remain in business.
One significant difference between a Chapter 11 and Chapter 13 filing is that there is normally no trustee in a Chapter 11. This means you can continue to manage your own business as before. This is referred to as being a debtor in possession.
In a Chapter 11, with court approval you can liquidate some or all of your assets and also restructure certain contracts that may be burdensome to you. Imagine paying off outstanding debt, negotiating more favorable agreements with vendors or unions, and jettisoning unprofitable parts of your enterprise, all under the auspices of a federal judge. This can be the difference between saving a successful business or having your business fail.
If you need some assistance, and more time, to make your business profitable again, contact us for a free consultation with an experienced bankruptcy attorney in Chicago. Our office serves clients throughout the Chicagoland area.
Contact The Law Office of Thomas W. Drexler Today @ 312.726.7335