In Toledo, Chapter 11 bankruptcy proceedings are designed for businesses but can also be utilized by individuals. Chapter 11 bankruptcy cases are similar to a reorganization in Chapter 13, but Chapter 11’s are more flexible. Simply put, Chapter 11 is a reorganization of your financial affairs without borrowing any money. Immediately upon filing, the court will issue what is called an “automatic stay” against your creditors. The automatic stay gives you some breathing room to concentrate on getting back to profitability.
Reasons To File Chapter 11 Bankruptcy
There are many reasons to file Chapter 11. Chapter 11 can be the most beneficial move a business can make or in some situations it may be the only way to save a business.
Chapter 11 Bankruptcy can:
- Stop foreclosure on valuable property
- To cure tax debt over time
- Restructuring debt over a longer period of time to cut back immediate expenses
- STOP IRS seizures, tax levies, repossessions, and other creditor actions.
Don’t Wait Too Long
The biggest mistake most people make is that they wait too long to seek advice. You may be tempted to spend cash flow trying to catch up in hopes of avoiding filing bankruptcy. To make the most informed choice on what to do next, please set up a consultation with Bankruptcy Attorney Scott Ciolek at 419-740-5935.