Oak Park Real Estate & Estate Planning Blog

Anyone in Oak Park who is considering personal bankruptcy and who also owns a small business should begin working with a lawyer as soon as possible to understand the potential implications of consumer bankruptcy for their business. If you are considering personal bankruptcy and you are wondering whether your small business will be impacted, the short answer is that it depends upon your situation. In many circumstances, a small business owner can file for personal bankruptcy without affecting the business. However, in situations where the small business and the business owner are the same legal entity, personal bankruptcy will also have to be business bankruptcy. Then, depending on the type of bankruptcy you are planning to file for, you may be able to keep your business open. Our Oak Park bankruptcy attorneys can provide you with more information. Personal Bankruptcy for Sole Proprietors If you are planning to file for personal bankruptcy and you are a sole proprietor, you should know...

There are many small business owners in Oak Park and throughout the Chicago area. Yet running a small business can be extremely difficult and complicated, especially a business in a field or industry that has been struggling since the start of the pandemic. In most circumstances, small business owners who are having difficulty repaying business debts are also struggling with their debts and finances as consumers, and they may be considering bankruptcy. If a consumer owns a small business and wants to file for bankruptcy , what does that consumer need to know? Our Oak Park bankruptcy lawyers have some information and tips to help. Consumers Who File for Bankruptcy and Own Sole Proprietorships Will Also be Filing for Business Bankruptcy If you are planning to file for bankruptcy because of your consumer debt, or you are planning to file for bankruptcy largely because of your business debt, the distinction will not matter too much under U.S. bankruptcy law if your business is structured ...

Filing for personal bankruptcy is an extremely complex process, and it is essential for anyone considering it to speak with an experienced bankruptcy lawyer about the different types of bankruptcy and their effects. For small business owners in the Oak Park area, the prospect of filing for consumer bankruptcy can raise many questions and concerns about how a personal Chapter 7 or Chapter 13 bankruptcy filing will affect the business. If you are wondering about the risk of losing your small business if you file for personal bankruptcy, there is no simple answer to the question based on existing bankruptcy law . Rather, the answer will depend upon a few key factors, including the type of business structure you are using for your small business and the type of bankruptcy you are considering. How is Your Small Business Structured? When you are considering whether a personal bankruptcy filing could result in you losing your small business or being forced to close the doors of your small ...

Small businesses and family-owned businesses can be great investments for many people in Oak Park. However, like individuals and other larger businesses, small businesses can struggle with debt. Small businesses and family-owned operations can have trouble making payments on business debts, and they can amass credit card debt that amounts to much more than the revenue that the business is bringing in. When a business is having a lot of financial trouble, many people assume that the business can file for Chapter 7 bankruptcy or Chapter 11 bankruptcy, and that the owner (or owners) can protect their personal property and personal financial history even though the business may have to close. However, there are some situations in which a business bankruptcy is actually more like a consumer bankruptcy. More precisely, for businesses that are structured as sole proprietorships, business bankruptcy is actually consumer bankruptcy . We will say more about how this works, and why t...

If you are thinking about filing for personal bankruptcy in Illinois , there are many factors to consider. For some residents of the Chicago area, the relationship between consumer bankruptcy and small business loans may be one of those factors. Obtaining credit for your business after you have declared bankruptcy is similar in many ways to getting credit for other purchases—potentially difficult in the time period immediately following bankruptcy, but certainly within the realm of possibility once you have rebuilt your credit. However, there are other significant considerations for Illinoisans who are seeking financing for business purposes. According to a recent article in The Wall Street Transcript , small business owners should consider a number of issues in relation to their personal finances. Keeping Your Business Profile and Personal Credit History Separate Generally speaking, if you have a small business, it is a good idea to keep your business credit history sep...

What should individuals do when personal finances and small business expenses together result in insurmountable debt ? In many cases, Chapter 7 bankruptcy can be an option for Chicagoans who own small businesses and are dealing with a substantial amount of debt related to their business. A recent article in Forbes Magazine discussed the pros and cons of Chapter 7 bankruptcy for adults who are nearing retirement and have been careful with personal finances throughout their working lives but have significant business debt. By taking a look at the scenario presented in the article, we can see how filing for Chapter 7 bankruptcy can do more than help individuals who are facing credit card debt or insurmountable medical bills. Chapter 7 bankruptcy can help individuals who have little to no credit card debt but have opened business that are, as the article describes, “hemorrhaging dollars.” Nearing Retirement and Considering Bankruptcy The scenario presented in the F...