Chapter 11 Bloomington Business Bankruptcy Lawyer & Business Bankruptcy Law Firm

What is a Chapter 11 Business Bankruptcy? Who would file a Chapter 11 bankruptcy in Bloomington?

A bankruptcy case filed under Chapter 11 of the U.S. Bankruptcy Code will generally be filed by a Bloomington area business, although this chapter is also available to individuals. While a business may choose to file a Chapter 7 bankruptcy (liquidation), it may not file a Chapter 13 bankruptcy (reorganization) because these are reserved for individuals. But it is very common for a business to want to reorganize its debts and stay in business rather than filing a Chapter 7 and liquidating all of its assets. Chapter 11 bankruptcies are available to McLean County businesses for this purpose (i.e., staying in business and restructuring the company's debts). Whether you are a small business or a large business, debt can become overriding.

There are some famous Chapter 11 bankruptcy cases filed by some high profile companies: Lehman Brothers in 2008 (during the Wall Street collapse); Washington Mutual Bank which was quickly acquired by Chase Bank; and the Enron bankruptcy which brought to light unlawful accounting practices. It doesn't take unlawful accounting practices to get a business, even a small business, into trouble ... the current economy combined with poor bookkeeping and/or lack of financial planning can cause problems and conceal a looming financial crisis for Bloomington businesses.

A business does not have to be completely insolvent before it is allowed to file a Chapter 11 bankruptcy case. Accountants and bookkeepers in the Bloomington, McLean County, Illinois, area can provide invaluable financial support to businesses and provide guidance of when it might be time to seek the advice of a qualified Bloomington Chapter 11 bankruptcy attorney. Some BlJpmorgan Chase Bank, National Association (1703 West Market Street, Bloomington, IL 61701) and Pnc Bank (National Association, 202 East Washington Street
Bloomington, IL 61701)
 

The main reason an individual or married couple would want to file a Ch. 11 bankruptcy instead of a Ch. 13 case is because their debts may exceed the limits allowed in chapter 13 bankruptcy cases. Although similar to ch.13, a Bloomington Chapter 11 bankruptcy is much more complicated and requires the advice of a qualified Bloomington Bankruptcy Attorney.

Common types of creditors in Bloomington, Illinois, with whom a person may have very high debts that disqualify them filing a chapter 13 bankruptcy:

Banks and Mortgage Companies such as Buffalo Savings and Loan Association (3003 South Loop West, Bloomington, Illinois, 77054) and Central Bank (11201 Clay Road, Bloomington, Illinois, 77043).

Car Dealers such as Autonet Broker (1412 Morrissey Drive, Bloomington, IL 61701,(309) 663-6000) and Bentley Motors (1508 S Main Street Fl 1, Bloomington, IL 61701, (309) 829-0000).

Jewelry Stores such as McLean County Exchange Inc (2016 Ireland Grove Road, Bloomington, IL 61704, (309) 661-1111) and Jack Lewis Inc Fine Jewelry (1702 Eastland Drive, Bloomington, IL 61704, (309) 663-0743).

The Basics of a Chapter 11 Bloomington Bankruptcy:

A qualified Bloomington Bankruptcy Law Firm will have the expertise to guide their clients through the Chapter 11 bankruptcy process. Here are the common steps for Chapter 11 cases filed in Bloomington and McLean County, Illinois (but they may vary depending on specific circumstances):

► The case begins when the petition is filed with the bankruptcy court. McLean County cases are filed with the Illinois Central Bankruptcy Court located in the 216 U.S. Courthouse, 100 N.E. Monroe Street, Peoria, IL 61602, (309) 671-7035.

► The filing fee of $1,000 and administrative fee of $39 are paid.

► Upon filing of the petition and pursuant to Section 1107 of the bankruptcy code, the debtor assumes the responsibilities normally assigned to a trustee (as in a Chapter 7 or Chapter 11 case) and is known as "debtor in possession." This means the debtor may continue to operate the business, including paying employees.

► The debtor in possession also has the responsibility of filing monthly operating reports with the Court and the U.S. Trustee, filing and paying taxes, and creating a plan for reorganization.

► Although the debtor is given the authority to continue to operate the business in the ordinary course of business, the debtor is expected to do so in a manner in the best interest of all concerned. The interest of the creditors is protected by the formation of various creditor committees. These committees will have much influence on the reorganization plan being developed by the debtor in possession.

► A plan is proposed, a confirmation hearing is held, and eventually a plan will be confirmed.

► The plan is implemented.

► Confirmation of the plan can also mean discharge of debts incurred prior to confirmation, but there are many variables including whether the debtor is an individual or a business. Your Bloomington Bankruptcy Attorney will advise you on the effects of confirmation of your plan.

Contact a Bloomington Bankruptcy Attorney for advice and consultation about filing a Ch. 11 McLean County Bankruptcy.

Serving clients throughout Central Illinois, including Bloomington, Champaign, Chenoa, Clinton, Decatur, Fairbury, Farmer City, Lincoln, Minonk, Morton, Normal, Peoria, Pontiac, Springfield, Urbana, Washington, areas in the vicinity of Central Illinois Regional Airport, and other communities in McLean County.