Creditors Rights in Bankruptcy

Debtor in Possession

When homeowners, property owners, and small businesses find they cannot repay their loans, they may file for bankruptcy to protect their finances and assets from further erosion. Sometimes they seek to remain a debtor-in-possession and continue living in the residence or operating the business to buy time for reorganization of their debts.

When financial institutions and corporations find they have lent money to individuals or businesses that cannot repay, collecting a loan in default can be very complex, costly and time-consuming. In these situations, it pays to be familiar with Ohio creditor’s rights to recover whatever compensation they’re entitled to.

Ohio Chapter 7 creditor rights

While the first impulse is to encourage the debtor to pay as agreed, there are laws that prevent Ohio creditor harassment. Bankruptcy filings, such as Chapter 7 and Chapter 11, often invoke an automatic stay that puts a halt to the collections process.

In its simplest terms, Chapter 7, Title 11 of the United States Bankruptcy Code governs the liquidation of assets and discharge of the debt for individuals, or the dissolution of a debtor corporation or partnership. Individuals and businesses can take advantage of Chapter 7. Ohio Chapter 7 creditors’ rights are best protected when the debt is secured by collateral.

Ohio bankruptcy creditor rights

But corporations can also file for bankruptcy under Chapter 11, Title 11 of the United States Bankruptcy Code. In this case, a bankruptcy court may determine the best way to achieve reorganization of the distressed corporate entity and allow it to continue to operate. This minimizes revenue losses and preserves jobs and Ohio Chapter 11 creditors rights.

The Law Offices of Barren & Merry Co, LPA has been representing Ohio bankruptcy creditors rights since 2002. We advise our clients of the best strategies for pursuing collections and recovering assets. We view litigation as the last resort, preferring instead to negotiate with debtors, restructure debts, and pursue workouts to prevent costly bankruptcies and preserve bankruptcy creditors rights in Ohio.

To obtain cost-effective legal assistance, and protect bankruptcy creditor rights in Ohio, please call Barren & Merry Co, LPA at 888-389-9397 or fill out the email form on our website.