Tinley Park bankruptcy attorney, small business bankruptcyWhen starting up a business, it is recommended that you plan to have at least five years of savings to support your business without profiting by a single dime, and if you can make it past the five years, your business has a higher potential for long-term success. The truth is, any company can experience financial turmoil at any point, be it two days or two centuries into service. The industry for which your company operates may fluctuate, or an unforeseen public catastrophe may drive business away. At what point do you decide to file for bankruptcy?

Small Business Bankruptcy

In some cases, but not all, you may be eligible to continue your business operation after filing for bankruptcy. Bankruptcy is an option when a company has accumulated more debt than the profit it is bringing in, with no hope of catching up. There are two options for small businesses which become a decision based on the future goals of the operation. If you would like to try to remain in business but need help with the accumulating debt, Chapter 11 bankruptcy may be an option where debts reorganize. If quietly closing the doors on this business and this part of your life is the best avenue, Chapter 7 may be the better option.

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Cook County bankruptcy lawyer,  Chapter 11 bankruptcyBusiness corporations, partnerships, and individuals whose debt exceeds the maximum limit for Chapter 13 bankruptcy turn to Chapter 11 bankruptcy, also known as reorganization, to essentially save their businesses and pay off the debt they can no longer keep up with over time.

Chapter 11 can offer a huge relief to business owners who have exhausted their debt management options, allowing them to propose a debt repayment plan and start fresh. However, failure to have that repayment plan approved or failure to follow through with an approved plan can result in forced liquidation, which means the debtor is sadly past the reorganization stage.

In order to ensure you successfully reorganize your business finances and have a smooth experience with Chapter 11 bankruptcy, it is important to do the following: 

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Cook County tax law attorney, Chapter 11 bankruptcyBankruptcy is never the first course of action an individual considers when addressing his or her mounting debt. Going bankrupt is typically a last resort used to restructure a large amount of debt that is no longer manageable, and to essentially wipe the financial slate clean. Even then, the process requires sacrifice, particularly when it comes to your credit scores, which suffer a very serious hit. Buying a home or car or obtaining any loan following a bankruptcy can be extremely difficult, and the only fix comes from the passage of time.

The Purpose of Chapter 11

Still, resorting to bankruptcy offers significant relief to individuals and business owners when filed properly with a trustworthy professional. Chapter 11 bankruptcy in particular is typically utilized by corporations or large business owners, but individuals who possess large assets and equally large debts also turn to Chapter 11 when they are looking for a fresh start.

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 Cook County bankruptcy attorney, chapter 11 bankruptcyNo matter what the circumstances look like, the decision to file bankruptcy is never an easy one, especially for business owners who must stand by and watch the business they have worked so hard for suffer heavy, often life-changing, financial loss. The choice to take the leap to declare bankruptcy should never be taken lightly, as it requires a great deal of evaluation of one’s financial situation in order to decipher whether or not the benefits outweigh the disadvantages.

Is Bankruptcy a Good Fit for Your Needs?

If you are a business owner sinking in debt and have decided it is time for some relief, filing for chapter 11 offers a number of advantages. Yet like all forms of bankruptcy, Chapter 11 requires a certain amount of sacrifice. The process itself is very complex and takes time to resolve in entirety.

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bankruptcy-and-social-mediaMost people share intimate details of their lives on social media – vacations, places they shop, purchases they make, and even what they wear. Unfortunately, this form of sharing can sometimes have legal repercussions. Take, for example, the current issues being faced by the famous rapper, 50 Cent.

Last year, Curtis Jackson, otherwise known as 50 Cent, filed for chapter 11 bankruptcy protection last year. Smack dab in the middle of it all, he posted several Instagram photos with loads of cash – one of a stack of money in his freezer, one in which bills were arranged to spell the word “Broke,” and one of him surrounded by stacks of cash on a bed. He says the bills were props, such as those used in music videos, but his creditors and the judge are far from amused.

According to the New York Times, 50 Cent states that the postings are essential to maintaining his appearance and securing his future. When his history of merchandising deals and “living large” are mixed with a number of failed business ventures and several lawsuits, it becomes difficult to determine whether he is hiding assets or telling the truth. Because of this, his creditors are asking for a reevaluation of his assets, and a judge is reportedly pulling him back into court to speak about the matter.

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