Our Illinois readers may not know that both businesses and individuals can seek debt relief through bankruptcy. Recently, the Executive Director of the Illinois Facilities Authority sought to address the increasing debt from the renovation of Solider Field. The facility is seeking debt relief in the face of increasing payments. Payments have increased from $6.3 million in 2002 to $26 million this year, and payments are expected to reach approximately $88 million by 2032. While the public agency that owns and operates Soldier Field saw a profit of $551,000 last year, payments are expected to rise to $2 million this year, eliminating any profit. The agency and its seven-member board is seeking, along with the Executive Director, to refinance bonds on the facility. The city must cover any shortfall in the agency’s ability to make payments, which two years ago stood at $185,000.
Debt relief can sometimes be achieved through a business bankruptcy. Businesses facing financial challenges and looking for a fresh start can file for a Chapter 11 reorganization bankruptcy. Like Chapter 13 consumer bankruptcy, this type of bankruptcy will require reliable income. A reorganization plan for repayment of the debt will be developed. The court must confirm that plan and if it does, a discharge of debts that existed before the plan is possible. Chapter 11 bankruptcies can also be converted into Chapter 7 in some instances.
For both individuals and business seeking a fresh financial start, there are many feasible options available. Different forms of bankruptcy are available to allow anyone facing financial challenges a chance at a fresh start.
Source: Chicago Tribune, “Kelly Kraft focuses on debt in first sports panel meeting,” Jared S. Hopkins, Dec. 12, 2012
Chicago’s Soldier Field faces financial trouble