Corporate Dissolutions and Assignments Attorney in Barrington, Illinois
Corporate Dissolution or Assignments for The Benefit of Creditors (ab Cs) – Alternatives to Bankruptcy
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 of experience with bankruptcy law. Contact attorney John H. Redfield today.
Assignments for The Benefits of Creditors
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 to 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:
More flexible options than a Chapter 7 bankruptcy
No court supervision
Lower administrative expenses
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. We serve the communities of Chicago, Lake County, Cook County, and Northwest Suburbs areas.