Some bankrupt Applebee's restaurants in Chicago might close

The economy has taken a toll on many large and small businesses throughout the U.S. Some business owners have decided to call it quits, but other business owners have considered the option of bankruptcy. That is the case for one Applebee's franchisee.

According to the Herald-News, a recent bankruptcy filing by an Applebee's franchisee might lead to more than half of the Chicago-area restaurants closing. Bankruptcy court filings note that the franchisee has made a deal to sell approximately half of the restaurants to another entity; however, additional bids for the remaining restaurants are being solicited.

Chapter 11 bankruptcy

According to the U.S. Courts, Chapter 11 bankruptcy is a type of bankruptcy filing that is typically made by business owners and wealthy individuals. It is similar to a personal Chapter 13 bankruptcy filing in that it allows for business owners and individuals to reorganize their debts and make payments to creditors within a certain timeframe.

The types of businesses that generally choose to seek Chapter 11 bankruptcy protection can include:

  • Corporations
  • Sole proprietorships
  • Partnerships

It also bears mentioning that if a railroad company is seeking reorganization under Chapter 11, it will be subject to certain special requirements under the Bankruptcy Code. Further, the U.S. Courts note that commodity and stock brokers are not allowed to file for Chapter 11 bankruptcy protection - generally their only option will be to seek Chapter 7 bankruptcy relief.

What can a Chapter 11 filing do for an individual or business?

Since some business owners simply need a little extra help with getting their businesses back on track, Chapter 11 bankruptcy might prove to be quite beneficial for them in the long run. Filing for Chapter 11 protection can be a way for owners to protect their businesses, all while maintaining operations and finding more efficient ways to run the company. Many businesses bounce back from Chapter 11 bankruptcy and go on to have successful futures.

Likewise, for wealthy individuals who may not be eligible to file for a Chapter 13 repayment plan, Chapter 11 might prove to be helpful to them by allowing those who have substantial debts and considerably high assets to have a new financial beginning.

Chapter 11 bankruptcy filings give people and businesses a chance to meet their financial obligations in a reasonable amount of time by making payments that are more affordable based on their particular circumstances. Anyone who is considering filing for Chapter 11 bankruptcy protection would benefit from the help of an experienced bankruptcy attorney.