Chapter 11 Bankruptcy

A Chapter 11 bankruptcy generally provides for reorganization of debts for businesses and individuals engaged in business.  A chapter 11 case involves proposing a plan of reorganization to keep business alive and pay creditors over time.  A Chapter 11 plan provides the opportunity to cure lease and loan defaults or modify debts.

Beginning in 2020, small businesses or individuals may qualify for a streamlined, “Fast Pass” Chapter 11 if their total debts are less than $2,725,625.  This newer type of Chapter 11 case under Subchapter V is a service we offer to small business and individuals.  It is very similar to Chapter 13 cases that we frequently file with less costs and expenses than a traditional Chapter 11 case.  We can help examine the qualifications, risks, and benefits of filing a Chapter 11 bankruptcy and advise of any alternatives.

In addition to offering services for Subchapter V cases, our Columbus, Ohio attorneys handle preference defense actions for local businesses caught up in the filing of a Chapter 11 by its customers.  We can help if your business receives a complaint for recovery of a preferential payment in a Chapter 11 case.  A payment greater than $6,825 by a Chapter 11 debtor to a business within 90 days of the bankruptcy petition may be a preference that is recoverable by a Chapter 11 debtor or trustee.  We will evaluate if there are defenses that can be raised to prevent or limit a preference recovery and can help businesses limit their losses.