When small business owners in Ohio go through difficult times, they may be looking at options to relieve the pressure and get back on track. Business debt can be overwhelming, and the appropriate step might be to seek professional advice. A Chapter 11 bankruptcy filing may be a suitable solution, and the business may be saved under the supervision of a court-appointed trustee.
The U.S. Trustee’s duties include the review of the requests for relief and tailoring the relief according to the circumstances. The requests may include professional services, emergency financing and payments to individual suppliers. The trustee must also establish committees to represent creditor groups such as unsecured creditors, equity security holders or bondholders and more. He or she will then organize and oversee the seven to 15 committee members — typically accountants and attorneys representing creditors.
The trustee will ensure disclosure statements and reorganization plans, and provide accurate and adequate information. He or she will monitor the filer’s compliance with the U.S. Bankruptcy Code and the company’s fiduciary duty to the creditors. The required documents must be filed, and the progress toward reorganization will be monitored. The trustee will also prevent undue delays in the proceedings.
A small business owner will likely have numerous questions about the pros and cons of filing for a Chapter 11 bankruptcy. This information is available from an experienced Ohio bankruptcy attorney who can also explain other available options. With this knowledge, the client can decide the most appropriate way to deal with the business debt, and with the support and guidance of a skilled attorney, financial stability may be regained.
Source: justice.gov, “The U.S. Trustee’s role in Chapter 11 bankruptcy cases“, Feb. 9, 2017