Our attorneys advise small & mid-size businesses for subchapter 5 of chapter 11 bankruptcy and for consumer bankruptcy in chapter 7 and 13.
Initially, we will assess your financial situation and assess whether out-of-court restructuring is viable and would be a better alternative rather than filing for bankruptcy.
Subchapter 5 of chapter 11 (newly enacted), allows small & mid-size businesses and individuals to restructure their debts in a greatly streamlined and cost effective manner. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) has increased the eligibility debt limit up to $7.5 million for one year. Thus, allowing mid-size businesses with debts of $7.5 million or less to qualify for subchapter 5 of chapter 11.
Businesses often file to reorganize in bankruptcy in order to restructure their debts, reject unexpired leases and executory contracts, sell unexpired leases and executory contracts via assumption and assignment and in order to negotiate a settlement of pending lawsuits. These benefits are available to businesses filing for reorganization under the new subchapter V.
For more information about the new subchapter 5 of chapter 11, please click here.
