You might not think it, but a business breakup or a partnership dispute can be just as taxing, both emotionally and financially, as a divorce. Hopefully, you don’t have to face either of these situations. But, if you’ve just broken up with your business partner(s) or you’re in the middle of a partnership dispute that doesn’t seem like it’s headed for a resolution, you may be facing bankruptcy in Chicago.
Hopefully, you can avoid bankruptcy altogether. However, if you can’t, you’ll give yourself the best chance of getting back on your feet as quickly as possible by hiring a legal professional qualified to handle cases of bankruptcy in Chicago. So, you know how you can use bankruptcy as an exit strategy from a business breakup or dispute, we’ll review the different types of bankruptcies.
Different Types of Bankruptcy
They are limited, but you may be surprised to know that you do have options when it comes to filing bankruptcy. In fact, there are three types of bankruptcy: Chapter 7, 11 and 13.
Chapter Seven is common for individuals. In a Chapter 7 bankruptcy, the debtor liquidates all of his or her assets and any debts that can’t be paid back are forgiven. While a Chapter 7 isn’t an easy process, it is generally the simplest form of bankruptcy, at least from a legal perspective.
Chapter 11 and 13 bankruptcies are more accurately referred to as “reorganizations.” The main difference between these two types of bankruptcies is just the means by which you must qualify to file. To file a Chapter 13 case, debtors must have debts below a certain threshold.
In both cases, the debtor maintains possession of his or her assets and presents a payment plan to the court for approval. If the plan is approved, the debtor can keep their assets and may be forgiven for some of their debts before the bankruptcy.
Call Now for Help Ending Your Business Dispute with Bankruptcy
The Law Office of Thomas W. Drexler specializes in helping business owners and partners remove themselves from acrimonious disputes with a bankruptcy in Chicago. Even with a legal professional by your side, the process is fraught with legal challenges and obstacles that you must overcome.
Put your bankruptcy case in the trusted hands of the Law Office of Thomas W. Drexler. To do so, call +1-312-726-7335. Or send an email to td@drexlaw.com