Subchapter 5

Subchapter 5 Bankruptcy Lawyers in Cleveland

Knowledgeable Attorneys Handling Subchapter 5 Bankruptcy in Cleveland

At The Romano Law Firm, we provide skillful legal advocacy for individuals, families, couples, and businesses experiencing financial hardship. We understand the ins and outs of bankruptcy, and we are here to be a source of guidance, reassurance, and peace of mind for you, your loved ones, or your organization. Since 2003, we have helped thousands of people through the process of bankruptcy while protecting their best interests at every turn, and we are prepared to do the same for you, beginning with a complimentary case evaluation.


Call (216) 238-0880 to connect with a member of our team and schedule your free, no-obligation consultation with experienced Cleveland bankruptcy lawyer Joe Romano, Esq.


What Is Subchapter 5 & What Does it Mean for You?

Subchapter 5 is a recently enacted piece of legislation designed to make small business bankruptcy more expeditious and less costly to the filing party. “Subchapter 5” generally refers to the Small Business Reorganization Act (SBRA), which was passed by Congress on February 19, 2020.

Relief under Subchapter 5 is available to persons and entities with a total debt that is equal to or less than $2,725,625.00. (Persons whose debts are related to a single real estate asset are not eligible to obtain relief under Subchapter 5.) If the court permits you to reorganize under Subchapter 5, you will remain in possession of your property and work with a court-appointed trustee to formulate a reorganization plan. The trustee in your case will also hold you accountable for making payments on time, attending important hearings related to your case, and so forth.

There are several key benefits to filing under Subchapter 5. First of all, the trustee’s role is such that it is not necessary for your creditors to form a committee, and much time and energy are saved by circumventing the process of committee review, voting, and approval or denial or your proposed reorganization plan. The timeline for Subchapter 5 bankruptcy is also significantly expedited and may only take a few months to complete.

Forming a Plan to Discharge Your Debts Under Subchapter 5

Ultimately, your reorganization plan is subject to the court’s review and final approval, which is more quickly and easily gained under Subchapter 5, due to the following changes:

  • Adherence to the Absolute Priority Rule no longer applies.
  • An impaired class of creditors need not accept the proposed reorganization plan.
  • Administrative claims may be paid overtime and need not be paid in full in order for the court to confirm a reorganization plan.

Bankruptcy is complex and challenging, but these and other changes made by Subchapter 5 can make it possible for your small business to undergo bankruptcy quickly and come out the other side unscathed. When you call The Romano Law Firm for help, we are prepared to help you take full advantage of as many of these positive changes as possible in order to protect your business, your livelihood, and your future. We urge you to seek counsel immediately and allow us to be your advocates during this difficult time in the life of your business.

Call (216) 238-0880 or contact us online to schedule your free consultation with a skilled, experienced Subchapter 5 bankruptcy attorney in Cleveland.

Our Clients Matter Most

Client Testimonials
  • No regrets!

    “He was so interested to listen to my concerns and ever more on helping me figure and fix things out! Truly the perfect bankruptcy attorney to fill your needs!”

    - Yho V.
  • Joe Romano did a great job for me.

    “He's knowledgeable, he's diligent, and he fought hard for me. I wouldn't hesitate to recommend him to anyone who needs legal help.”

    - Zeke R.
  • Extremely professional and prompt.

    “Mr. Romano was extremely professional and prompt in helping to resolve my matter. I am very grateful to have stumbled upon his services while browsing for representation on the internet.”

    - Jeff M.
  • Mr. Romano has worked with my family on several matters.

    “We have worked with him for over 7 years now and he comes highly recommended.”

    - Paula G.
  • What a great lawyer!

    “Joseph saved me tens of thousands with my bankruptcy. I wouldn't hesitate to recommend him to anyone.”

    - Kristina B.
/

Results That Prove Themselves

Notable Cases
  • Successful Defense Thomas v. Kuhn

    Successful defense of a title company in a trustee's efforts to invalidate a mortgage and take property of debtor for benefit of creditors of the debtor.

  • Successful Appeal In re DeVito

    When a Ch. 13 plan is filed it becomes the plan, superseding all previously filed plans. Court was wrong to dismiss case based on the non-confirmability of a chapter 13 plan that had been amended

  • Successful Judgment Dawson v. J&B Detail

    Court determination that "On-Time Pay System" (kill-switch) is an attempt to collect a debt and must be removed from a vehicle upon the filing of a Ch. 13 bankruptcy)

  • First Circuit Court Level Decision In re Davis

    Sixth Circuit found that debtor's filing Chapter 13 bankruptcy are permitted to continue deductions made from payroll into retirement in the Means Test and can continue to fund the retirement plan throughout the life of the chapter 13 plan provided the debtor was doing so prior to the filing of the Chapter 13.

  • Successful Defense Rhiel v. Seye (In re Kebe)

    Represented the 3rd party co-owner of property, showing that value of property to Seye outweighed the value of the property to the creditors of the debtor's bankruptcy estate.

  • Successful Defense Jennings v. Bodrick

    Creditor argued that debtor was in on a Nigerian scam to invest in the international sale of auto parts.

/

A Promise to Our Clients

What You Can Expect
  • Free Consultations

    Whether it's in person or through phone or video, your first initial consultation with us is free!

  • Results-Driven Legal Strategies

    With a strategy put in place after evaluating your case, Attorney Joe Romano can get you the results you need.

  • Direct Access

    When you call our office, don't expect to be passed around. You will get direct access to our attorney to speak about your case.

  • Knowledge & Experience

    With nearly two decades of experience, Attorney Joe Romano is equipped with the knowledge to handle the toughest of bankruptcy cases.

Ready to Take the First Step?

Our team is ready to help you get started with your bankruptcy matter. Request a free consultation today to discuss your case.