Experienced Southwest Ohio Subchapter V Bankruptcy Lawyers
Subchapter V bankruptcy is a streamlined version of Chapter 11 bankruptcy specifically designed for small businesses. Recognizing the unique challenges faced by smaller enterprises, Congress created Subchapter V to simplify the reorganization process, making it more accessible and affordable. This is only available to companies that have up to $3,024,725 in debt.
Because this option has only existed since 2019, very few attorneys located in Montgomery, Butler, Warren, Hamilton and surrounding counties in Ohio have experience with this type of bankruptcy case. Hurley Law has been through the process and is available to advise you whether Subchapter V Chapter 11 is a good fit for you.
Faster And Less Expensive
Compared to traditional Chapter 11, Subchapter V significantly reduces the time and cost associated with bankruptcy proceedings. This allows businesses to focus on their operations and recovery, rather than being bogged down in complex legal procedures.
Dedicated Trustee Who Wants You to Succeed
A dedicated trustee is appointed to oversee the Subchapter V case. This trustee plays a crucial role in facilitating communication between the business and its creditors, helping to guide the reorganization process and ensuring fairness. The individuals that typically get appointed to serve as the trustee want to help you and your lawyer find a reorganization plan that will succeed.
You Remain the Debtor-in-Possession
In most Subchapter V cases, the business owner remains in control of the business operations as the “debtor-in-possession.” This is a legal term that means you can continue making key decisions and managing your business while working towards a financial turnaround.
More Flexible Reorganization Plans
Subchapter V offers greater flexibility in structuring a repayment plan compared to traditional Chapter 11. For example, unsecured creditors can be paid over plans lasting as long as five years. Secured creditors can be restructured over plans lasting as long as ten years.
Simplified Reporting Requirements
Subchapter V reduces the administrative burden on small businesses by simplifying reporting requirements. In traditional Chapter 11 cases, the company must file complicated disclosure statements. These are not required in Subchapter V, which helps reduce the cost and timelines.
No Creditors Committees
Another key difference between Subchapter V bankruptcy and conventional Chapter 11 bankruptcy is the appointment of a creditors committee. In traditional Chapter 11, the Judge will appoint certain creditors that have control over the reorganization plan. In Subchapter V, creditors committees are not required which gives you and your lawyer more control over the reorganization plan.
The Subchapter V Process
The Subchapter V process involves several key steps:
- Consultation and Assessment: We’ll thoroughly review your financial situation, explain the Subchapter V process, and determine if it’s the right option for your business.
- Filing the Petition: We’ll prepare and file the necessary paperwork to initiate the Subchapter V case.
- First Day Motions: Most cases require the Judge to make decisions on key items at the very beginning of the process. This includes things like continuing to pay employees, approving insurance policies, and having continued access to cash that may be used as collateral for certain debts.
- Development of a Reorganization Plan: We’ll work closely with you to develop a comprehensive reorganization plan that addresses your debts and outlines a path to financial recovery.
- Creditor Approval and Court Confirmation: The reorganization plan must be approved by a majority of your creditors and confirmed by the court.
- Implementation of the Plan: Once confirmed, you’ll begin implementing the plan and making payments to your creditors.
This process can take six to twelve months, depending on the complexity of your business and debt structure.
How A Southwest Ohio Subchapter V Bankruptcy Lawyer Can Help
Navigating Chapter 11 Subchapter V bankruptcy requires highly skilled and experienced legal counsel. Very few attorneys across the Daytona and Cincinnati region are qualified to successfully handle these cases. We are proud to be among that small group.
Contact us today at 513-318-9893 or through our contact form for a free confidential consultation. We can help you explore all of your small business debt relief options and determine whether Subchapter V is a smart solution for you.