If your business is drowning in debt, Chapter 11 bankruptcy may help you resolve your debt problems while maintaining business operations. Depending on your circumstances, Chapter 11 may allow you to maintain ownership of your business or may transfer ownership to a creditor or other party.

Whatever your circumstances, the business bankruptcy lawyers in Naperville at Lynch Law LLC can help. We have decades of combined experience handling bankruptcy cases for clients in DuPage County and throughout the Chicago metro area. We understand how stressful the process can be and take great care to educate our clients on their options and help them manage expectations.

Bankruptcy for Businesses

If your business is in the red, your creditors will probably threaten legal action against you personally. How much they can collect will depend on how your business is organized, whether you personally guaranteed any repayments, and whether you decide to file for bankruptcy.

Sole Proprietors & Partnerships

The IRS holds all business owners personally liable for unpaid payroll taxes, regardless of their business' structure.

If you're a sole proprietor, you and your business are legally one and the same, so you're personally responsible for all debts. If there isn't enough money in the business to pay these debts, creditors can and will take your personal assets.

In a general partnership, each partner is personally liable for the entirety of the business's debts (and any partner can usually bind the entire partnership to a business deal - a scary combination). This means that if there isn't enough money in the business to pay the debts and your partners are broke, creditors can take your personal assets to pay all of the business's debts, not just your share.