Businesses in North Riverside File For Bankruptcy To Protect Their Futures

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Though businesses occasionally find themselves in situations where they are forced to fend off involuntary bankruptcies that have been put in motion by creditors, such enterprises are just as likely to initiate insolvency filings for the sake of safeguarding their own interests.  As the health of businesses is generally judged to be a part of the overall value of a community, many of the protections granted to individuals by bankruptcy declarations are extended to private companies, both large and small.  Small businesses, after all, are often the primary generator of new jobs in most communities and, because of this, the government considers their continued operation to be essential to the economy.  It’s precisely because such a declaration extends certain protections to their holdings, in fact, that many small businesses in North Riverside file for bankruptcy each year.

In general, there are two basic paths by which a business can file for bankruptcy.  The first, under Chapter 7, is often referred to as a ‘straight bankruptcy’.  As with individuals, a business Chapter 7 filing involves the liquidation by a trustee of all assets that have been deemed non-exempt.  Though the exact nature of these assets or holdings vary from business to business, those that are generally considered essential to some form of rehabilitation can be considered secure from liquidation.  The proceeds from the sale of non-exempt items, however, is used to repay some of the debt that is owed to creditors.  In return, some debt may be forgiven.  Given that the auctioning of substantial assets will usually result in the sudden retraction of a business, however, this form of bankruptcy is sometimes thought of as a measure of last resort.

Another approach is for businesses to file under Chapter 11.  Like a Chapter 13 or ‘Wage Earner Bankruptcy’, debtors under Chapter 11 retain all their assets and continue to manage day to day operations.  They are, however, designated as ‘debtors in possession’ and must cooperate with the Bankruptcy Court to formulate a repayment plan with creditors that prioritizes repayments in a fair manner.  This plan is then voted on by the creditors and may be subject to further modification by the courts if it does not receive the approval of the majority of stakeholders.

As with personal bankruptcy cases, both business Chapter 7 and Chapter 11 declarations are intended to financially rehabilitate enterprises that may be essential to the continued well-being of a community.  As such protections also guard the original investments of shareholders, they are generally thought of as adding stability to the economy.

For more information on how personal and business bankruptcies compare, any interested party should feel free to contact the experienced attorneys at our offices.  Given that personal and business bankruptcies are a chance for financial rehabilitation that can help everyone who interacts with or relies on a debtor, we’re happy to advise and represent any individual, family, or business entity that is facing an insolvency situation.

Will I Appear on a North Riverside Bankruptcy Register?

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One of the things individuals fear most about declaring bankruptcy is the possibility that they may end up on a searchable online docket.  The truth, simply put, is that bankruptcy filings are a matter of public record unless sealed.  In general, documents relating to bankruptcies are available at the Bankruptcy Clerk’s office during regular business hours and on many searchable databases.  Though a North Riverside bankruptcy register does not exist in the strictest sense of the term as bankruptcy is a matter handled by the federal court system, there are currently a variety of databases that individuals can subscribe to that are designed to allow searches to be narrowed down to specific cities.

A filer, therefore, should have a sense of what information may become available to the public after they declare bankruptcy.  Court records can, for instance, show the original petition, which lists the names of the debtor and all involved creditors, trustees, attorneys, and judges, the sum of money that the suit involves, a timeline of events relating to the bankruptcy, and the final verdict and claims registry.  In addition, these documents may also show the reasons for the proceedings.

The fact that information can be gleamed from public documents that relate to a bankruptcy proceeding, however, should not deter individuals from seeking the protections such a declaration can provide.  In the case of Chapter 13 filings, this includes a time period of between 3 and 5 years for debtors to reorganize and repay what they owe to creditors.  Under Chapter 7, which involves the liquidation of non-exempt assets, this protection includes securing property that is considered essential to one’s continued livelihood, such as trade tools and some older vehicles.

The goal with all forms of bankruptcy, however, is financial rehabilitation, and so anyone who, despite debt reorganization and cost-cutting measures, is still on the verge of insolvency should contact an experienced attorney like the professionals employed at our offices.  They look forward to helping people in financial straits navigate the bankruptcy process.

Chapter 7 is One of Many Types of Bankruptcy

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When people think of bankruptcy they often envision the liquidations that are a part of the Chapter 7 process.  For this reason, families that are suffering from extreme financial stress routinely choose to delay bankruptcy past the point where it can have a positive effect on their lives or ignore the option altogether, often to their detriment.  Not all bankruptcies, however, involve liquidation, as under Chapter 13, for instance, an individual retains all their assets and is instead expected to repay their creditors along the guidelines of a plan that has been approved by the courts.  For many individuals that are still employed and for whom non-exempt assets have been thought of as an investment for future income, such a ’Wage Earner Bankruptcy’ may be the best path toward financial rehabilitation.

Even when someone does declare Chapter 7 bankruptcy, however, they do not necessarily lose any of their assets.  This is because many people who have reached the point where such an insolvency is necessary have already sold off non-exempt assets on their own, leaving, through their own planning, only items that are essential to survival like clothing and trade tools.  Because they have already, in effect, liquidated their own non-essential property, it’s not likely that a bankruptcy trustee will discover non-exempt assets.

Finally, it should also be remembered, beyond Chapter 7 and Chapter 13, that there are other forms of bankruptcy declarations that individuals can make.  Chapter 11, for instance, is intended for use by business entities, however it can also be declared by some large family estates and individuals that meet specific financial and employment conditions.  Another form of insolvency, Chapter 12, can also be utilized by family farms.  Though most Chicago bankruptcy cases have little to nothing to do with agriculture, the growth of small organic farms throughout many of the outer suburbs may bring about changes in how this and other bankruptcy laws are used by the general public.

For more information on how the various bankruptcy laws can affect your family, feel free to contact the experienced professionals at our offices.

North Riveside Bankruptcy Questions Answered: Five Things Every Consumer Should Know

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At a time when rising electricity, gas, and food prices have forced even the most conscientious and responsible of consumers to consider the possibility that they may have to declare bankruptcy in the near future, taking the time to review a few basic facts regarding insolvency can be a useful exercise.  Indeed, as declines in commerce, real wages, and price hikes for commodities like power and consumables have had a noticeably negative impact on individuals, including the residents of North Riverside, bankruptcy questions have increasingly become a topic of everyday conversation.  To help both people in general and anyone who may be considering declaring bankruptcy, then, we’ve put together a brief set of questions and answers:

I’ve heard that bankruptcy laws have changed in recent years.  Can people still file for Chapter 7?

Yes, though they must meet certain requirements.  The changes people are generally thinking of when they discuss the new restrictions on Chapter 7 filings were brought about by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  Though it mandates that a person’s finances undergo a ‘means test’ before a Chapter 7 filing can proceed in the courts, such a petitioner may still file for Chapter 13 if they are discovered to have disposable income.  They must also wait eight years before they can file again.

Are there specific laws for each city or state?  Are North Riverside bankruptcy laws different than those in Chicago or other parts of Illinois?

Bankruptcy proceedings occur in federal court and are generally governed by federal bankruptcy statutes, however the laws of individual states influence areas not covered by federal bankruptcy laws.  A case filed in North Riverside or any western suburb, for instance, will be handled in a federal court, however it is also affected by the laws of the state of Illinois.  Individual cities do not have their own bankruptcy laws.

Do I lose everything when I file for bankruptcy?

No.  Under Chapter 7 non-exempt items are auctioned off by a trustee, however many essential, or ‘exempt’, items are retained throughout the procedure.  Under Chapter 13 an individual has none of their assets liquidated, however they must form a plan that will allow them to repay their creditors within 3 to 5 years.

Are there ways to avoid bankruptcy?

Yes.  Debt consolidation and resettlement with creditors are but two of the many possible ways to avoid bankruptcy.  For more information on this subject, it might be in a consumer’s interest to consult a credit counseling agency.

There are, of course, many of the bankruptcy questions that deserve detailed answers.  As every individual case is affected in slightly different ways by the law, however, anyone who may be facing insolvency should speak to one of the experienced attorneys at our offices.  We are, after all, always happy to help anyone in need of legal counsel.

Chapter 13 Declarations Increase Among North Riverside Bankruptcy Filings

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Though there was a brief respite in bad economic news for a few months in 2009 and into 2010, the problems that small businesses, consumers, and laborers face returned with new rounds of negative financial data in 2011.  As prices for basic commodities increased along with a rise in inflation, wages and retail profits remained flat, creating a situation where American families began to spend far more to survive than what they were earning.  As a result, North Riverside bankruptcy filings, along with those in other western suburbs, have increased.  Because of a combination of the Bankruptcy Abuse and Consumer Protection Act of 2005 and the fact that more insolvency cases involve wage earners, however, a growing number of these cases have been Chapter 13 filings.

In many ways, this development is actually a good thing, as Chapter 13 grants a bankruptcy petitioner far more control over their own finances.  Unlike Chapter 7, it does not involve handing one’s economic fate over to a third party like a trustee but, rather, challenges a debtor to formulate a plan to repay their creditors.  As such, it gives these debtors a far more active role in their own financial rehabilitation.

Another positive aspect of filing for something other than Chapter 7 bankruptcy is that the consumer retains their assets.  Though this property may still be vulnerable to other types of legal action and have to be liquidated by the debtor themselves, it is at least under their control, which increases the odds that it will be retained at the end of the insolvency process.

The degree to which a North Riverside bankruptcy filing results in retained assets and viable financial rehabilitation, though, is often predicated on the manner in which it has been handled.  Because of this, an experienced bankruptcy attorney like the professionals at our offices can make all the difference for a family’s long term economic health.  To learn more about how we can help, feel free to contact us today.  It’s never too soon to get started on the road back to financial certainty.

North Riverside Chapter 13 Filings Increase as Families Adjust to the Changing Economy

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Also known as a ‘Wage Earner Bankruptcy’, Chapter 13 allows individuals and their families to retain all assets during a period in which they reorganize and begin to repay their debts.  Because of this, it is often the path toward financial rehabilitation that many households that still have some income choose, as it allows for what would be non-exempt items under Chapter 7, such as properties they may have purchased as an investment, to be retained.  The eventual loss of any asset is not automatically prevented by such an insolvency filing, however, and so though North Riverside Chapter 13 filings have increased in response to the tightening situation of the Midwestern economy, any decision to make such a declaration should not be made lightly.

Bankruptcy, after all, is essentially an option that allows those who simply cannot repay their debts to reorganize their financial responsibilities and, in the case of Chapter 13, create a plan that should lead to the repayment of creditors within 3 to 5 years.  It is not a magic shield that protects them from all future civil actions or foreclosures.  Unlike Chapter 7, however, Chapter 13 does not result in the auctioning of non-exempt assets, so it is arguably a preferred choice for many Midwestern and Chicago area families that simply need some time to reorganize their debts.  It is, in fact, the only choice for individuals for whom a ‘means test’, as mandated by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, has detected disposable income that could be directed towards debt repayment.

Each individual bankruptcy case, of course, is different, and there may very well be families for whom a Chapter 7 filing would be preferable.  In fact, there may be examples of households that would best benefit from a Chapter 11 declaration, such as extremely large or complex estates, or one that falls within Chapter 12, as is the case with family farmers.  In general, however, Chapter 13 is increasingly seen as a way for families in North Riverside and the other western suburbs of Chicago that have been hit particularly hard by the employment and mortgage crises to turn their fortunes around in a way that does not equate to a severe loss of properties that they may have once planned to rely on during retirement.

For more information on how the different bankruptcy chapters can affect the outcome of individual cases, or simply to discover which specific type is best suited for their situation, Chicago area residents who are dealing with severe financial strains and may be facing insolvency should contact our offices today.  Our experienced attorneys are happy to work with anyone who is experiencing economic difficulties take the first steps toward complete financial rehabilitation.

Chicago Bankruptcy Information: Chapter 7, Chapter 11, and Chapter 13

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At first, the different types of bankruptcy can be a bit intimidating to anyone who has previously given little thought to the possibility of declaring insolvency.  This is especially so given that changes in bankruptcy law occurred during a period of prosperity and were generally left unnoticed until the extended economic downturn began.  For many families in Chicago, bankruptcy information is therefore a subject that has never been studied or discussed before.  Because of these reasons, it’s important to review some of the basic facts regarding Chapter 7, Chapter 11, and Chapter 13 bankruptcy laws.

First, it should be noted, despite changes in bankruptcy law brought on by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, that individuals can still declare bankruptcy under Chapter 7.  They are simply limited to one claim per eight year span and must also subject their personal finances to a so-called ‘means test’.  This option, however, is still available to individuals who lack the disposable income needed to repay their creditors.  If they cannot proceed with such a petition, however, the option of filing under Chapter 13 is always available.

So what are the major differences between the various bankruptcy chapters?  Basically, they differ based on the scenarios they are intended for and the degree of a consumer’s debt.  In short, under Chapter 7 an individual has their non-exempt assets liquidated by a court appointed trustee in return for the forgiveness of some debt.  The proceeds from this sale are used to repay their creditors.  Under Chapter 13, also called a ‘wage earner’s bankruptcy’, the debtor’s assets are considered exempt from liquidation, however they must develop a plan to repay their creditors within 3 to 5 years.  This plan must also be approved by the courts.

Chapter 11 is similar to Chapter 13 in that it enables debtors to retain control of their assets, for which they are known as ‘debtors in possession’, however it is generally intended for businesses, though certain large estates fall under its purview on occasion.  Unlike other forms of bankruptcy, creditors may reject the debtor’s repayment plan, however, thereby forcing revisions and the possibility of a court-mandated settlement.

For more information on these and other bankruptcy issues, individuals who are facing the possibility of a complex financial rehabilitation, and so may not know exactly what chapter they need to file under, should feel to consult our experienced attorneys.  The more foreknowledge someone has about the process, the more likely it is that the process will turn out in their favor, after all.

North Riverside Bankruptcy Information: Chapter 7, Chapter 11, and Chapter 13

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At first, the different types of bankruptcy can be a bit intimidating to anyone who has previously given little thought to the possibility of declaring insolvency.  This is especially so given that changes in bankruptcy law occurred during a period of prosperity and were generally left unnoticed until the extended economic downturn began.  For many families in North Riverside, bankruptcy information is therefore a subject that has never been studied or discussed before.  Because of these reasons, it’s important to review some of the basic facts regarding Chapter 7, Chapter 11, and Chapter 13 bankruptcy laws.

First, it should be noted, despite changes in bankruptcy law brought on by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, that individuals can still declare bankruptcy under Chapter 7.  They are simply limited to one claim per eight year span and must also subject their personal finances to a so-called ‘means test’.  This option, however, is still available to individuals who lack the disposable income needed to repay their creditors.  If they cannot proceed with such a petition, however, the option of filing under Chapter 13 is always available.

So what are the major differences between the various bankruptcy chapters?  Basically, they differ based on the scenarios they are intended for and the degree of a consumer’s debt.  In short, under Chapter 7 an individual has their non-exempt assets liquidated by a court appointed trustee in return for the forgiveness of some debt.  The proceeds from this sale are used to repay their creditors.  Under Chapter 13, also called a ‘wage earner’s bankruptcy’, the debtor’s assets are considered exempt from liquidation, however they must develop a plan to repay their creditors within 3 to 5 years.  This plan must also be approved by the courts.

Chapter 11 is similar to Chapter 13 in that it enables debtors to retain control of their assets, for which they are known as ‘debtors in possession’, however it is generally intended for businesses, though certain large estates fall under its purview on occasion.  Unlike other forms of bankruptcy, creditors may reject the debtor’s repayment plan, however, thereby forcing revisions and the possibility of a court-mandated settlement.

For more information on these and other bankruptcy issues, individuals who are facing the possibility of a complex financial rehabilitation, and so may not know exactly what chapter they need to file under, should feel to consult our experienced attorneys.  The more foreknowledge someone has about the process, the more likely it is that the process will turn out in their favor, after all.

Chicago Chapter 13 Filings Increase as Families Adjust to the Changing Economy

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Also known as a ‘Wage Earner Bankruptcy’, Chapter 13 allows individuals and their families to retain all assets during a period in which they reorganize and begin to repay their debts.  Because of this, it is often the path toward financial rehabilitation that many households that still have some income choose, as it allows for what would be non-exempt items under Chapter 7, such as properties they may have purchased as an investment, to be retained.  The eventual loss of any asset is not automatically prevented by such an insolvency filing, however, and so though Chicago Chapter 13 filings have increased in response to the tightening situation of the Midwestern economy, any decision to make such a declaration should not be made lightly.

Bankruptcy, after all, is essentially an option that allows those who simply cannot repay their debts to reorganize their financial responsibilities and, in the case of Chapter 13, create a plan that should lead to the repayment of creditors within 3 to 5 years.  It is not a magic shield that protects them from all future civil actions or foreclosures.  Unlike Chapter 7, however, Chapter 13 does not result in the auctioning of non-exempt assets, so it is arguably a preferred choice for many Midwestern and Chicago area families that simply need some time to reorganize their debts.  It is, in fact, the only choice for individuals for whom a ‘means test’, as mandated by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, has detected disposable income that could be directed towards debt repayment.

Each individual bankruptcy case, of course, is different, and there may very well be families for whom a Chapter 7 filing would be preferable.  In fact, there may be examples of households that would best benefit from a Chapter 11 declaration, such as extremely large or complex estates, or one that falls within Chapter 12, as is the case with family farmers.  In general, however, Chapter 13 is increasingly seen as a way for families in Chicago that have been hit particularly hard by the employment and mortgage crises to turn their fortunes around in a way that does not equate to a severe loss of properties that they may have once planned to rely on during retirement.

For more information on how the different bankruptcy chapters can affect the outcome of individual cases, or simply to discover which specific type is best suited for their situation, Chicago area residents who are dealing with severe financial strains and may be facing insolvency should contact our offices today.  Our experienced attorneys are happy to work with anyone who is experiencing economic difficulties take the first steps toward complete financial rehabilitation.

Businesses in Chicago File For Bankruptcy To Protect Their Futures

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Though businesses occasionally find themselves in situations where they are forced to fend off involuntary bankruptcies that have been put in motion by creditors, such enterprises are just as likely to initiate insolvency filings for the sake of safeguarding their own interests.  As the health of businesses is generally judged to be a part of the overall value of a community, many of the protections granted to individuals by bankruptcy declarations are extended to private companies, both large and small.  Small businesses, after all, are often the primary generator of new jobs in most communities and, because of this, the government considers their continued operation to be essential to the economy.  It’s precisely because such a declaration extends certain protections to their holdings, in fact, that many small businesses in Chicago file for bankruptcy each year.

In general, there are two basic paths by which a business can file for bankruptcy.  The first, under Chapter 7, is often referred to as a ‘straight bankruptcy’.  As with individuals, a business Chapter 7 filing involves the liquidation by a trustee of all assets that have been deemed non-exempt.  Though the exact nature of these assets or holdings vary from business to business, those that are generally considered essential to some form of rehabilitation can be considered secure from liquidation.  The proceeds from the sale of non-exempt items, however, is used to repay some of the debt that is owed to creditors.  In return, some debt may be forgiven.  Given that the auctioning of substantial assets will usually result in the sudden retraction of a business, however, this form of bankruptcy is sometimes thought of as a measure of last resort.

Another approach is for businesses to file under Chapter 11.  Like a Chapter 13 or ‘Wage Earner Bankruptcy’, debtors under Chapter 11 retain all their assets and continue to manage day to day operations.  They are, however, designated as ‘debtors in possession’ and must cooperate with the Bankruptcy Court to formulate a repayment plan with creditors that prioritizes repayments in a fair manner.  This plan is then voted on by the creditors and may be subject to further modification by the courts if it does not receive the approval of the majority of stakeholders.

As with personal bankruptcy cases, both business bankruptcy Chapter 7 and Chapter 11 declarations are intended to financially rehabilitate enterprises that may be essential to the continued well-being of a community.  As such protections also guard the original investments of shareholders, they are generally thought of as adding stability to the economy.

For more information on how business and personal bankruptcies compare, any interested party should feel free to contact the experienced attorneys at our offices.  Given that business and personal bankruptcies are a chance for financial rehabilitation that can help everyone who interacts with or relies on a debtor, we’re happy to advise and represent any individual, family, or business entity that is facing an insolvency situation.