More U.S. businesses filed bankruptcy in 2020 amid the coronavirus pandemic than in any other year since 2009. Energy, retail and consumer services companies filed
Is Chapter 11 bankruptcy right for you?
Your Cincinnati business is struggling, and you’re not sure what to do. You’ve heard about Chapter 11 bankruptcy, but is it the right option for you and your business? Our Cincinnati Chapter 11 attorneys have years of experience helping businesses in Cincinnati and Northern Kentucky through this process and can guide you every step of the way.
Filing for Chapter 11 bankruptcy can be an unsettling prospect, but it may be the best option for your business. This process allows businesses to reorganize their debts and assets in order to repay creditors over time. Let the Minnillo Law Group help you decide if Chapter 11 bankruptcy is the right decision for your business.
Contact us today for a FREE consultation! We’ll answer all your questions and help you decide if Chapter 11 bankruptcy is right for you.
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Contact Our Cincinnati Chapter 11 Attorneys Today
Minnillo Law Group’s Cincinnati Chapter 11 attorneys have years of experience successfully representing businesses and individuals in Chapter 11 bankruptcy proceedings. Our attorneys will work with you to determine whether Chapter 11 bankruptcy is the right option for your situation and will advise you on the best course of action to take to protect your interests.
Contact us today for a FREE consultation by calling us at 513-723-1600.
What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy is a legal process that allows businesses to reorganize their debts and assets. Under Chapter 11, a business will continue to operate while it develops a plan to repay its creditors. This plan may involve reducing the amount of debt that the business owes, selling off assets, or both. In some cases, creditors may be asked to agree to accept less than the full amount that is owed to them.
Once the plan is approved by the court, the business will begin making payments to its creditors according to the terms of the plan. While Chapter 11 bankruptcy can be a complex and time-consuming process, it can provide much-needed relief for businesses that are struggling to stay afloat.
Cincinnati Chapter 11 Attorneys for Small Businesses
Running a business often involves taking risks. Many successful business owners have faced downturns in the economy, regulatory changes that have increased costs and disputes over unmanageable terms in a lease. In small businesses and family-run operations, business debts can frequently adversely impact the personal financial health of the owners, possibly resulting in small business bankruptcy.
If you are facing financial struggles related to your business in Cincinnati, it is critical for you to work with a Chapter 11 attorney with substantial experience providing bankruptcy and non-bankruptcy debt-relief solutions to protect your rights. The Cincinnati small business bankruptcy attorneys of Minnillo Law Group can work effectively to handle your small business-related bankruptcy and debt-relief solutions, including:
Commercial loan workouts
Many Cincinnati businesses experience cash flow disruptions as their operations and general business conditions change. If their financial situation grows more difficult, some of these businesses may consider filing for Chapter 11 bankruptcy relief or perhaps undertaking a restructuring or reorganization effort. Suppliers and customers may react negatively to these developments, however. To avoid these ramifications and protect the reputation of the firm, companies facing the prospect of bankruptcy should consider a commercial loan workout as an alternative.
In a commercial loan workout, a debtor company works closely with creditors to identify the scope of the financial problems and develop a comprehensive debt relief plan, involving partial forgiveness of specific debt obligations, consolidation of debts, reduced interest rates or extended loan terms. It may or may not involve a reorganization of the company’s financial structure, asset holdings and operations.
We have particular experience in these elements of commercial loan workouts:
- Negotiation – Our Cincinnati small business bankruptcy attorneys can negotiate debt reductions and more favorable payment terms with banks and lenders. We can also negotiate with non-secured creditors such as equipment lessors and suppliers, and renegotiate lease terms with landlords.
- Tax considerations – In a workout, it is essential to consider the tax implications of the workout. Our firm can evaluate the impact of taxes on proposed transactions and recommend optimal decisions. We understand financial transactions and the practical realities of business operations. We will recommend and implement a workout strategy designed to relieve the debt burden and restore your enterprise to financial health.
Small business reorganization
When a company faces financial difficulty, it may have several options. It can attempt to regain financial solvency by negotiating with creditors in a workout. It can also seek to reorganize its operations, asset holdings and ownership through a business reorganization. This usually occurs as part of the court-supervised Chapter 11 bankruptcy process, but a reorganization can occur without court supervision.
Just as each person is unique, each company is unique as well. A business reorganization needs to reflect distinctive management, financial and operational characteristics of the company. Because of the complexity of the legal, tax and operational issues that a reorganization entails, the counsel of an experienced Cincinnati Chapter 11 attorney is essential.
At Minnillo Law Group, we will carefully review all aspects of the company’s situation. Our Chapter 11 bankruptcy lawyers will craft a reorganization plan that takes into account its unique human, financial and operational factors, designed to restore the viability of the operation in a timely manner.
We will look at all possibilities, and aggressively pursue those that offer the best prospect for success. These actions may include renegotiation of debts and leases, refinancing, additional owners and capital, and the sale of certain assets. If necessary, we can use the Chapter 11 process to shed debt and obtain more favorable terms on the remaining obligations.
Commercial lease disputes
For many businesses, their lease is one of their largest liabilities. Filing Chapter 11 bankruptcy can help businesses restructure the terms of their lease while avoiding eviction. Chapter 11 options give businesses in financial distress some leverage in dealing with their landlord.
Once you file, many of the terms of your lease can no longer be enforced. For example, acceleration clauses or eviction clauses may no longer be enforceable. Further, you will have the option of assuming or rejecting your lease. If you assume your lease, you will have to repay all past-due balances.
Businesses with multiple locations can close unprofitable locations without paying all penalties associated with breaching the lease agreement. Generally speaking, the sooner you act, the more options you have.
Cincinnati Chapter 11 Attorneys for Individuals
Chapter 11 bankruptcy is typically used by businesses, but individuals can also file for this type of bankruptcy. It is particularly suited for individuals with high debts or who have complex asset holdings. Individuals who file for Chapter 11 bankruptcy go through a similar process that businesses do, but the timeline is typically shorter since they have fewer debts. During the bankruptcy process, individuals are also able to keep their homes and other assets.
What's the difference between Chapter 11 and Chapter 7 bankruptcy?
Chapter 7 bankruptcy is typically filed by individuals or businesses who cannot repay their debts. In a Chapter 7 bankruptcy, assets are sold off to pay creditors and the debtor is discharged from any remaining debt.
Chapter 11 bankruptcy is typically filed by businesses that need time to restructure their debt. In a Chapter 11 bankruptcy, the business stays open and operating while they develop a plan to repay creditors. Creditors must vote to approve the plan and, once approved, the business makes payments to creditors according to the plan.
What's the difference between Chapter 11 and Chapter 13 bankruptcy?
Like Chapter 13, a Chapter 11 bankruptcy for an individual is a debt repayment plan. If you are eligible, our firm will present a repayment plan to the Bankruptcy Court, based on your income adjusted for expenses. Chapter 11 allows you to keep the mortgaged property and other assets, which makes it suitable for individuals who own businesses or real estate holdings.
You may be ineligible for Chapter 13, but eligible for debt relief under Chapter 11 if either of these applies:
It is important to note that Chapter 11 has a different set of rules than Chapter 13. Our Chapter 11 lawyers understand these rules, and we will take full advantage of these rules to protect as much of your property as possible.
How a Cincinnati Chapter 11 Attorney can protect Your Assets
Debt issues involving small businesses often pose a double problem. First and foremost is the challenge of remaining in business or liquidating the business with minimal financial loss. Second, owners’ personal assets are often vulnerable when their small businesses default on debt payments.
Our team of Chapter 11 bankruptcy lawyers has decades of experience and has helped hundreds of Cincinnati area businesses. We can meet with you, gather information, provide knowledgeable legal counsel regarding the debts for which you’re responsible, and devise an effective strategy to protect your business and your personal assets. Some questions we may ask include:
A recent case illustrates our effectiveness in helping small-business owners. A local small business had two locations, one of which did well and one of which struggled, causing financial strain for both locations. We were able to help our client keep his profitable store open and make money.
In some cases, small business bankruptcy can actually make your business more competitive by reducing overhead in comparison to competitors.
What can I expect from my Chapter 11 attorney?
After a Chapter 11 bankruptcy filing, our bankruptcy lawyers will work with the court to develop a Chapter 11 reorganization plan. The key to a successful plan is to obtain the approval of the plan by creditors, as well as their cooperation. Our team of Chapter 11 attorneys has successfully negotiated with creditors in numerous bankruptcy cases.
We will identify the steps that need to be taken to restore financial stability to your business by first anticipating lenders’ desires and potential objections on the part of creditors. We will then negotiate with creditors, lenders and landlords to reduce the outstanding obligations and obtain better terms.
Our Cincinnati Chapter 11 bankruptcy lawyers and legal team provide ongoing, detailed representation every step of the way, including preparing and filing the monthly reports that the court requires. We can also advise on the implications of proposed transactions and asset transfers.
Cincinnati Chapter 11 Bankruptcy Resources
Financial struggles are incredibly common in businesses, especially in 2020. And many entrepreneurs are overwhelmed by how they resolve these struggles. For some, bankruptcy might
When most people think of the benefits of working out, their minds go to physical health and fitness. They imagine weight loss, lower blood pressure,
We are a law firm and a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.