Corporate Dissolutions Assignments for the Benefit of Creditors
An alternative to a company filing for a Chapter 7 bankruptcy may be a corporate dissolution. An Illinois company wishing to dissolve must file a formal corporate dissolution application with the Secretary of State. Upon obtaining a dissolution from the state, a bar notice must be sent to creditors and the corporation is obligated to wind-up its business.
Unlike an individual, a corporation filing a Chapter 7 case does not receive a discharge of debts. There may be many advantages in instituting a corporate dissolution over filing for bankruptcy under Chapter 7.
The process is complicated and requires an experienced lawyer. At John H. Redfield & Associates you will receive legal guidance from an attorney with more than 30 years experience with bankruptcy law. Contact attorney John H. Redfield today.
As a former bankruptcy trustee, John Redfield represented bankruptcy trustees for over 15 years. Accordingly, he understands the procedures and methods trustees take to collect the money owed the bankruptcy estate after a business files for bankruptcy. This knowledge of the liquidation process greatly benefits company officers when they seek to execute an assignment for the benefit of creditors (“ABC”).
Assigning assets for the benefit of creditors allows a company to appoint a selected fiduciary and assign the company’s assets to that person. The fiduciary sells and distributes the proceeds from those assets according to priorities set forth in state law. Creditors may receive a repayment of money owed. The advantages of an ABC for a business are:
If your business faces liquidation, you don’t have to face it alone. The process should be handled by an experienced attorney. Contact John H. Redfield & Associates for help.
John H. Redfield and Associates is ready to help you get relief from the burden of uncontrollable debt, so contact a bankruptcy attorney today for your own personal consultation.