Bankruptcy Lawyer in Columbus, OH
People and businesses can find themselves in a position where they have no choice but to submit a bankruptcy claim. Filing for bankruptcy does not necessarily mean the company will be closing its doors. However, it does mean that certain debts need to be evaluated, which may cause the company to change how it conducts business. Filing for bankruptcy under Chapter 11 in Columbus, Ohio, is an excellent and productive way to deal with financial trouble.
At Sheppard Law Offices, we have seasoned attorneys who focus on numerous aspects of bankruptcy law. We provide prompt legal action to address your concerns in this area so you can get back on your feet as quickly as possible. You can call us toll-free or make an appointment for a free consultation. We are available around the clock to discuss your legal options and ensure that you receive the maximum compensation.
Why do I need a Bankruptcy Lawyer in Columbus, OH.?
As bankruptcy is a legal process, it is generally advisable to have a bankruptcy attorney guide you through the procedure. An experienced bankruptcy attorney can provide peace of mind and significantly less stress during the bankruptcy process. In general, our bankruptcy attorneys offer potential clients the following legal services:
- You will receive a free initial consultation that will provide a thorough overview of your potential bankruptcy case.
- You will receive sound legal counsel regarding your bankruptcy options, such as which type to file and whether to use federal or state exemptions.
- Your Ohio bankruptcy lawyer will ensure that all of your bankruptcy paperwork is appropriately completed and filed on time.
- When your bankruptcy case is presented in court, your bankruptcy attorney will represent you.
After the initial consultation, your Ohio bankruptcy attorney will inform you if they believe that debt settlement or debt management would resolve your financial problems better. You must be completely forthright with your bankruptcy attorney, enabling them to assess your financial situation accurately.
What is a Chapter 11 Bankruptcy?
The United States Bankruptcy Code outlines the proceedings for filing bankruptcy. Chapter 11 is frequently referred to as reorganization bankruptcy. It’s for businesses or organizations that want to continue operating but need time to restructure their finances to pay their bills.
In addition to allowing a business to continue operations, filing Chapter 11 stops debt collector calls, at least in the short term. A business may voluntarily file for bankruptcy or be forced to do so if three or more creditors file a petition with the bankruptcy court.
Once the petition is filed, creditors are temporarily barred from taking action. The business or individual has four months to develop a reorganization plan, which can be extended to 18 months if necessary. Creditors can then propose reorganization plans.
The plan is essentially a contract between the debtor and the creditor that specifies how the business will operate and pay its debts. The majority of plans include some degree of downsizing to reduce expenses and liberate assets.
Once a business or individual submits a plan, creditors vote on whether it’s acceptable. They are typically cooperative because the alternative is to file for Chapter 7 bankruptcy. In Chapter 7 bankruptcy, assets are liquidated, and creditors may receive little to nothing.
Priority, secured, and unsecured creditors are the three types of creditors. Each class of creditors must vote on the reorganization plan, and the bankruptcy court must approve it. If the plan includes a schedule in which some claims will not be paid in full or when they were initially due – referred to as “impaired” claims – at least one class of creditors must approve the plan.
If the plan is rejected, the business or individual may request a “cram down,” in which a judge forces creditors to accept the plan. In other words, they intend to swallow it whole.
There is no deadline for the completion of the repayment plan. Most range from six months to two years.
Chapter 11 Bankruptcy Eligibility
The ability to file for bankruptcy under Chapter 11 is open to virtually any person or business. Chapter 11 is available to most individuals, corporations, partnerships, joint ventures, and limited liability companies. This is because there are no limitations or requirements regarding the amount of debt or income.
In a nutshell, you can file for Chapter 11 case if you need to reorganize your personal or corporate finances to have a fresh start financially.
Who, then, can’t do it? None of the following can file for Chapter 11 bankruptcy:
- Government entities,
- Insurance firms,
- Non-business trusts,
- Stockbrokers or commodity brokers, and
- Investment companies regulated by the Small Business Administration.
A person who has already had one bankruptcy case rejected within the past six months due to specified grounds cannot file for bankruptcy either.
If you don’t count among those exceptions and can afford the costs of filing and legal fees, Chapter 11 is a solution that may be available to you.
Call our Bankruptcy Lawyers Now!
If your business is contemplating Chapter 11 bankruptcy as a way to handle unmanageable debts and liabilities, Sheppard Law Offices can assist you and your business in deciding whether to pursue Chapter 11.
Our legal staff has substantial Chapter 11 experience. Through bankruptcy and other debt-resolution options, our firm has assisted several businesses and individuals in resolving their debts and financial troubles throughout the years.
We could assist you if your company’s bankruptcy resulted from a long-planned decision or a sudden emergency. Regardless of the complexity of your company’s bankruptcy case, our firm is equipped to handle it.
We would never force or compel your business to file for bankruptcy. Still, we can assist you in exploring alternatives to bankruptcy that may help your company overcome its financial challenges.
Schedule a free, no-obligation appointment with a Chapter 11 bankruptcy Ohio-based attorney at Sheppard Law Offices to understand how our firm may assist your business with its financial issues. If you want to learn more about bankruptcy proceedings, call us today.