Illinois Business Bankruptcy Attorneys
The business bankruptcy attorneys at Jordan & Zito have more than 25 years of experience representing corporate debtors, secured lenders and major creditors in Chapter 7 and Chapter 11 bankruptcy matters.
From pre-bankruptcy planning through plan confirmation and even post-confirmation matters, our Chicago-based business boutique law firm handles represents clients in bankruptcy courts across the nation.
Debtor Corporate and Small Business Bankruptcy Representation
Businesses rely on Jordan & Zito for sound, commonsense bankruptcy advice. We provide our clients with guidance on Chapter 7 and Chapter 11 filings and help them either wind down their businesses or restructure to survive.
Chapter 7 business bankruptcy: If a business is not financially salvageable, filing a Chapter 7 bankruptcy petition may be the best course of action to end the business and protect the owner's personal wealth and assets.
The bankruptcy court requires the debtor company to fill out and file various legal forms. An experienced Chapter 7 business bankruptcy attorney will provide the counsel, strategic advice and drafting expertise needed to properly complete the bankruptcy petition, statement of financial affairs and schedules the court requires.
In a Chapter 7 bankruptcy, the bankruptcy court appoints a trustee, who then sells the assets of the company and distributes the proceeds to the company's creditors:
- Secured creditors, who typically have loans secured by collateral such as property or equipment, are typically paid first.
- Unsecured creditors—entities that made loans that were not backed by collateral, such as credit card companies—typically occupy the second tier of repayment.
- Bondholders, individuals who hold company debt, are third on the list of creditors.
- Shareholders who own stock in the company are at the last to be repaid if a company fails
Chapter 11 business bankruptcy: A business or partnership that is struggling to meet its financial obligations but could become profitable again if it reorganizes its debts may choose to file for Chapter 11 bankruptcy.
As in a Chapter 7 bankruptcy, a business seeking Chapter 11 protection will need to file a number of legal forms, and an experienced Chapter 11 business bankruptcy attorney is a vital part of the process. Some of these documents are:
- Chapter 11 bankruptcy petition
- Schedule of assets and liabilities
- Schedule of current income and expenses
- Schedule listing executory contracts and unexpired leases
- Statement of financial affairs
- Disclosure statement
- Plan of reorganization
The plan of reorganization classifies the claims of creditors and explains how they will be treated in the restructuring. Creditors who will have their contractual terms changed or modified or who will be paid less than what they are owed are allowed to vote on the plan. The bankruptcy court will also evaluate the reorganization plan at a confirmation hearing and will ultimately decide whether to accept it, dismiss the company's petition or convert the bankruptcy to a Chapter 7.
Creditor Representation in Business Bankruptcy Matters
When a business files for bankruptcy, some creditors mistakenly believe that they can do little to protect their financial interests.
A bankruptcy attorney can help the creditor:
- File a proof of claim
- Obtain relief from an automatic stay
- Request a Rule 2004 examination of the debtor
- Assist in the assumption or rejection of executory contracts
- Advise unsecured creditor committees
Jordan & Zito has helped hundreds of creditors and lenders navigate the business bankruptcy process and maximize the amount they are entitled to receive. During the course of his career, bankruptcy attorney Gregory Jordan has represented a wide range of creditors, including Ford Motor Credit Co., Fifth Third Bank, RBS Citizens N.A. and CNH Capital America LLC.
To find out how Jordan & Zito can help you with a Chapter 7 or Chapter 11 business bankruptcy matter, call 312-489-8174 or contact us by email.
We are a debt relief agency. We help businesses file for bankruptcy relief under the Bankruptcy Code.