Chapter 11 Bankruptcy Lawyer in Akron, OH

If you are struggling to pay your bills or keep your business open, Chapter 11 bankruptcy could provide the financial relief and restructuring you need to get a much-needed fresh start. Chapter 11 bankruptcy, also called “reorganization bankruptcy,” provides many people with the opportunity to regain control of their finances and futures. 

While filing for bankruptcy is undoubtedly the right choice in many instances, navigating the process is notoriously challenging. Fortunately, you don’t have to do it alone. A skilled bankruptcy attorney could make the process much easier for you. 

At Amourgis & Associates, Attorneys at Law, our Akron bankruptcy lawyers have years of dedicated experience helping our clients through all types of bankruptcy cases. To learn more about our effective and compassionate representation, contact our firm to get started with a free initial case review. 

Who Can File for Chapter 11 Bankruptcy?

It used to be that only big corporations could afford to declare Chapter 11 bankruptcy. But thankfully, the law has since expanded to allow small businesses, sole proprietors, and partners to file under Chapter 11. Most often, companies file Chapter 11 when they cannot pay their debts but still want to save their businesses.

Individuals may also file Chapter 11 bankruptcies, though it is rare due to the associated costs and requirements. In most cases, only individuals with too much debt to declare Chapter 13 bankruptcies file under Chapter 11.  

Benefits of Filing for Chapter 11 Bankruptcy

Here are some of the financial and legal advantages of Chapter 11 bankruptcy for business owners and individuals:

• Stay in business — Business owners have the opportunity to keep their businesses running while they reorganize their finances and pay down debts.
• A break from the creditors — Creditors must cease collections activities and related legal efforts while debtors work out repayment plans in court.
• Restructure debts — Secured debts, which are debts attached to assets like homes or vehicles, may be restructured to allow for more manageable payment plans.
• Negotiate and manage debts — All filers have the opportunity to negotiate with creditors for lower interest rates and sell assets with current liens on them to reduce their debt burdens.
• Discharge some debts — Certain unsecured debts, such as credit card debts, and some tax debts may be discharged upon completion of approved repayment plans.

What Is Subchapter V of Chapter 11 Bankruptcy Code?

The Small Business Reorganization Act (SBRA), also referred to as Subchapter V of Chapter 11, was signed into law in August 2019. The law was intended to make Chapter 11 more accessible to small business owners.

Filing under Subchapter V has several key advantages over traditional Chapter 11 filings. For one, small business owners have fewer administrative fees and more time to pay those fees. Small business owners who file under Subchapter V also avoid the requirement for a committee of creditors, which can increase the risk of disputes. 

Chapter 11 Bankruptcy Process in Ohio

Every Chapter 11 bankruptcy case begins by submitting a petition to the bankruptcy court. Most Chapter 11 cases are filed voluntarily. But in rare cases, creditors may collaborate to file involuntary petitions against those in default. In Ohio, Chapter 11 petitions may be filed in any of the federal district courts statewide — one of which is located in Akron.

When you file a Chapter 11 petition, it must include the following details:

• A complete accounting of your assets and liabilities
• Statements listing all current sources and amounts of income and expenses
• Thorough lists of any contracts you have with creditors or unexpired leases
• A general summary of your financial status and affairs
• Company balance sheets and tax returns, if you are filing as a business owner

You may be required to submit other types of documentation depending on your status as a petitioner. For instance, individuals and married couples filing jointly must provide proof of completion of credit counseling courses and any debt management plans they developed in counseling. A knowledgeable Ohio bankruptcy lawyer can help you identify all filing requirements from the beginning and avoid common slip-ups that could derail your case.

Once you have filed your petition and the court decides to accept it, any debt collection activities against you must cease. Your creditors will be required to pause their liens, repossession efforts, and lawsuits. This “automatic stay” will continue until a debt repayment plan is approved. While the stay is in effect, you will be required to submit regular income reports. Your creditors can also ask the court to partially lift the stay if your finances improve substantially.

You have 120 days from the date when the court accepts your petition to submit a proposed reorganization and repayment plan for your debts. You can usually ask your creditors to lengthen your contracts, decrease your payment amounts, and even accept less than the full amounts you still owe. In turn, creditors have the right to vote on the plan or dispute certain aspects. 

After the court approves your repayment plan, it will appoint a bankruptcy trustee to monitor your case as you follow the plan. If you don’t follow the terms of your plan at any time, your creditors may renew their collection efforts. You will also need to manage certain administrative tasks and seek approval for some financial decisions. That’s why it’s best to have a skilled Chapter 11 bankruptcy lawyer help you through the process.  

How Long Does Chapter 11 Bankruptcy Take?

In many cases, there are multiple hearings in bankruptcy court before a repayment plan is fully approved and goes into effect, which can take months. Unlike Chapter 13 bankruptcies, which last no longer than three to five years, Chapter 11 bankruptcy proceedings have no absolute limits. Chapter 11 filers can stretch out their repayment plans over much longer periods, sometimes even as long as 10 years. This means the Chapter 11 process can be incredibly lengthy, though the longer repayment period may make things more manageable for debtors.

Talk to Our Experienced Chapter 11 Bankruptcy Attorneys in Akron, OH Today

Declaring bankruptcy is a big decision that can have far-reaching implications for your finances and business. The Akron bankruptcy lawyers of Amourgis & Associates, Attorneys at Law can help you determine the best path forward. Contact our experienced Chapter 11 bankruptcy attorneys in Akron for your free initial strategy session.