Johnson Legal Services, PLLC was listed among the top bankruptcy case filers by volume in 2024 and 2025 by the Bankruptcy Court for Northern District of West Virginia. We assist clients obtain a fresh start through the bankruptcy process in Ohio, Pennsylvania and West Virginia

 
What Can Federal Bankruptcy
Law Do for You?

Federal bankruptcy law has the advantage of being federal law, meaning that it is backed by the Supremacy Clause of the United States Constitution and has priority over State law. Unlike debt consolidation, bankruptcy law is mandatory and does not depend on negotiation.

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The moment a bankruptcy case is filed, all collection action must stop, including actions in pending court cases. If you are receiving collection calls, having your wages garnished, have judgements against you, or if you would like to avoid such things happening to you, call today for a tailored plan to overcome your financial difficulties and clear your path to a better financial future.

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Consumer Chapter 7

 

If you are eligible for a "no asset" Chapter 7 case, the whole process can be over in about 100 days, and you can focus on a future that does not include the stress of pre-existing debt. Qualifying for Chapter 7 has two components: assets and income.  Often, and sometimes with prudent pre-bankruptcy planning, individuals get to keep their assets from creditors in bankruptcy - including the house and the car. On the income side of the equation, an individual's earnings are compared to the state median income for the individual's household size.  For those with income above the state-median, the bankruptcy "means test" applies and an individual's budget is subject to some real and some imagined expense standards provided by the Internal Revenue Service.  Means testing in bankruptcy can be complicated, so it is important to make an appointment to discuss your financial situation in detail with our office staff.  For those who are unable to pass the means test, a repayment plan under Chapter 13 may be the best option. ​Because Mr. Johnson serves as the Standing Chapter 13 Trustee for the Northern and Southern Districts of West Virginia, the firm does not represent West Virginia residents in consumer bankruptcy cases and the firm only represents individual consumers who are residents of Ohio or Pennsylvania. 

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Business Chapter 7

Businesses don't receive a discharge under Chapter 7 of the Bankruptcy Code; however, a business Chapter 7 case can be a helpful step in winding up business affairs, putting the remaining business assets, if any, before a neutral, third party trustee, and once the bankruptcy case is over, articles of dissolution can be filed with the Secretary of State. 

 

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Chapter 11, Subchapter V, for Business Debtors

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Subchapter V of Chapter 11 is an excellent tool for small businesses with less than $7.5 million in uncontested debts. It is a faster and less expensive alternative to regular Chapter 11 cases (think General Motors or an airline bankruptcy). A plan is proposed in 90 days, a plan can be confirmed without  creditor voting, and secured debts can be "crammed down" to the value of the collateral over a 5 year period to increase cash flow.  Ideally, a Chapter 11 plan will pay all allowed general unsecured debts in full; but if not, unsecured creditors are paid pro rata and the remainder is discharged.  Recently, many small business debtors come to us with merchant cash advance debts, which constrict cash flow to a point that a bankruptcy becomes the best viable alternative. 

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Chapter 12

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It i​Chapter 12 is for family farmers and fishermen. The purpose of Chapter 12 is to keep family farms operating, and it offers many powerful advantages in dealing with farm creditors. Mr. Johnson serves as the case trustee for Chapter 12 cases filed in West Virginia, so fling a Chapter 12 case on behalf of a family farmer or fisherman is only available for individuals or businesses in Ohio and Pennsylvania.

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Chapter 13

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If you are an individual and have too much equity in your property or too much income to file a Chapter 7 case, or if you are seeking to save a home from foreclosure, Chapter 13 is an excellent option. Chapter 13 is a 3-5 year repayment plan that generally allows you to keep your home, cars and other property from your creditors. Chapter 13 also has advantages for dealing with equitable distribution claims, certain tax claims, secured claim cramdowns, and reducing certain contract rates of interest. For individuals on social security who want to preserve their family home from collecting creditors, Chapter 13 is often the filing chapter of choice. Both Chapter 7 and Chapter 13 should be considered before wasting funds on debt consolidation alternatives. Mr. Johnson serves as the only Standing Chapter 13 Trustee for West Virginia, and this service is only offered to residents of Ohio and Pennsylvania.

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How Much Does a Bankruptcy Case Cost?

This is probable the most frequently asked question and is not subject to a fixed answer for all cases. Below is a summary of what fees and costs one can expect:

Consumer Chapter 7: $338.ooo fling fee, $25,00 debtor education course fee, $45 credit report fee, $25.00 financial management course fee, $1,800.00 attorney's fee = $2,233.00 total fees and costs.  The firm accepts legal insurance programs such as Metlife, ARAG and Legal Ease that will cover the costs of the attorney fee. The firm also accepts legal aid referrals and offers reduced rates for those lower or fixed income. When a client's income is less and 150% of the national poverty level, a waiver of the bankruptcy court's $338.00 filing fee is possible. All Chapter 7 fees have to be paid before the case is filed. For those clients needing additional time to pay fees, the firm may provide services under the Fair Debt Collections Practices Act and other state consumer debt collection laws to stope debt collection activity. 

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Business Chapter 7: For most small businesses, the firm charges $2,500.00 and there is a $338.00 filing fee = $2,838 total. When there are significant assets, employee claims, retirement plans, and complex financial transactions  the price can increase significantly. A fixed quote requires a consultation.

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Chapter 13: Traditionally, the firm accepts the "no look fee" offered in Ohio and Pennsylvania. The firm requires $500 - $1,500 up front, and the rest is paid over the term of the Chapter 13 plan from funds that, generally, would otherwise be paid to your unsecured creditors. The no look fee allowed by each district is different, and it changes periodically. Generally, no look fees are around $5,000.00. 

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Subchapter V of Chapter 11: Depending on the size of the business, the firm generally requests $7,500- $25,000 for an initial retainer. Of this amount $1,738 is used to pay the court filing fee, and $1,000 is held in trust for a subchapter V trustee who will be appointed to the case. Depending on whether the filing is an emergency, we prepare the motion to use cash collateral, motions to value, lawsuits (as applicable) and the preliminary plan before filing. After filing, the firm bills hourly, and fees and expenses are presented to the bankruptcy court for approval. A subchapter V debtor is also responsible for paying the fees of the subchapter V trustee. Total post-petition fees for subchapter V cases can vary widely. The firm has represented subchapter V debtors and incurred as little as $6,500 in post-petition fees debtor's counsel, and closer to $100,000 for cases that require more complex litigation. As a general rule of thumb, the better financial information the firm has at the outset, and the more willing the debtor entity is to play by the rules in Chapter 11, the less expensive the case will be. 

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