Chapter 11 Bankruptcy Representation in Cook, DuPage, and Kane Counties
Has an economic downturn or some other disruption left your business struggling financially? Is your organization unable to fulfill payment requests, or is it in danger of losing critical assets? Chapter 11 bankruptcy may be able to facilitate the reorganization and relief your company needs to move forward and prosper.
Jim Young is an Elgin Chapter 11 bankruptcy lawyer who is committed to helping businesses overcome seemingly insurmountable financial challenges. With 30 years of legal experience, he understands how to make the most of available relief and set clients up for success, no matter how dire their circumstances may appear. Jim is hands-on and will work closely with you and your partners to develop a strategic, tailored plan. He will continue to provide comprehensive support from start to finish and make every effort to protect your interests.
How Chapter 11 Bankruptcy Works
Filing for Chapter 11 bankruptcy will temporarily protect your organization from collection actions. Creditors will be unable to pursue payment requests, collection lawsuits, foreclosures, or property seizures.
During your Chapter 11 bankruptcy, you and your partners will retain control of the company, which can in most cases continue to operate normally. However, you must get permission from the court before taking certain types of actions, including selling assets, starting (or ending) a rental agreement, or making significant changes to business operations.
You and your partners will need to prepare and send a “disclosure statement” to the court. This will list a complete list of your business's creditors, debts, liabilities, income, expenses, and all other pertinent financial information. The court and your creditors will use this accounting to verify the viability of your reorganization plan, so it is paramount that the disclosure is accurate.
In the 120 days after filing, you will have the exclusive right to submit a reorganization plan that sufficiently addresses your business's financial problems. Your plan may propose liquidating certain assets, downsizing operations, renegotiating debts, or pursuing other changes that make your organization more financially sustainable moving forward. Your business may even be able to wipe out certain types of debt once certain plan conditions are met.
Your business's creditors have the right to vote on and challenge your proposal, though the court can overrule any objections if they believe the plan meets certain standards of fairness. If you wait too long to propose a plan, your creditors will get the opportunity to submit a counterproposal, which will rarely be in your best interest.
The Elgin Chapter 11 bankruptcy attorney at James Young Law can help you create and confirm a proposal that maximizes relief while meeting all legal requirements. Jim Young can also assist with combatting any objections that may arise from creditors during the process.
How Subchapter V Works for Small Businesses
Chapter 11 bankruptcy is the most costly and complex form of bankruptcy, and the expenses associated with managing it ironically make the option prohibitive to many smaller businesses. Fortunately, Subchapter V provides an expedited, more cost-efficient alternative.
A company is a “small business” that potentially qualifies for Subchapter V relief if its debts do not exceed $3,024,725 as of April 1, 2022. For cases filed through March 31, 2025, debts owed to relatives or company insiders are excluded from this count.
Subchapter V offers several key advantages over a traditional Chapter 11 bankruptcy. There is no creditors' committee in Subchapter V, limiting the possibility of legal conflict and associated delays.
Small businesses using Subchapter V do not have to prepare a disclosure statement, though they do need to fulfill other filing requirements. Subchapter V cases do have more oversight, as a trustee will be assigned to manage the case, but filers enjoy a longer exclusivity period (180 days versus 120 days) to propose their reorganization plans.
An Elgin Chapter 11 bankruptcy lawyer can walk you through how Subchapter V specifically differs from a traditional filing and whether this strategy is the right choice for your case. The attorney at James Young Law understands how to effectively navigate both procedures and can provide your business with the advocate it needs to get through this difficult time.