We Help Small Business Owners Settle Their Debt
The Small Business Reorganization Act of 2019 is a relatively new piece of legislation that adds Subchapter V to the United States Bankruptcy Code. What it does is allow small businesses to restructure their debt much as they would in Chapter 11 but benefit from a streamlined process.
Key provisions of Subchapter V include:
- No disclosure statement is required
- No formal committee of creditors needed
- Creditors lack a formal vote to approve or reject a plan
- A “fair and equitable” plan can be one that pays disposable income to a creditor during a three to five-year period
- A Subchapter V trustee does not take control of debtor’s assets or control their business
If you’re a small business owner looking to relieve yourself from mounting debt, consider speaking with a Subchapter V attorney in Orange County about your options in this new bankruptcy process. At Financial Relief Law Center, APC, we are well versed in all bankruptcy matters regardless of how recent they may be. We can help your small business release all or most of its secured and unsecured debt by working on a personalized Subchapter V repayment plan for your company.
“As the process moved forward Amanda stepped in and also was very explanatory and helped me prepare for court. In the end, I am very glad I chose this firm and I would recommend them to anyone who is contemplating bankruptcy.”- J.J.
How Does a Business Qualify for Subchapter V Bankruptcy?
If the provisions provided in Subchapter V sound like a promising prospect to ease your company through a Chapter 11-like type of bankruptcy, you may be wondering how you can qualify. As legislation was originally passed in August 2019, small business owners in Orange County with no greater than $2,725,625 of secured and unsecured debt could file for Subchapter V.
How the CARES Act Applies to Subchapter V
In response to a worldwide pandemic that began to affect the U.S. on a mass scale by early March 2020, state governments enacted stay-at-home orders that forced certain “non-essential” businesses to close or have their revenues impacted by a sharp decline in business.
Signed into law in late March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided economic relief that included an increase in the debt threshold for Subchapter V by nearly double. As a result, business owners exploring their options in Subchapter V bankruptcy can owe as much as $7.5 million to qualify until March 27, 2021.
Due to an anticipated increase in filings, however, it’s important to have a capable Subchapter V attorney who can help you move throughout the process by clearing as many hurdles as possible. Financial Relief Law Center, APC’s attorneys focus our firm on bankruptcy services of all kinds, and we are well versed in the Subchapter V process. We can walk you through each step so you can feel more confident that your chance of achieving the best possible result is secure.
Contact Us for Small Business Debt Relief in Orange County
Saving your company and your livelihood can begin with a simple email or phone call you make today to Financial Relief Law Center, APC. We can arrange a free initial consultation for you so that you can have a chance to sit down with an attorney and discuss your situation and learn how we can offer a personalized approach to solving your company’s debt problems through Subchapter V.
Get the legal help you need now by contacting Financial Relief Law Center, APC online today!
25+ Years of Combined Legal Experience
Our team of attorneys has extensive knowledge of bankruptcy and estate planning law, with over two decades of combined experience between them.
Solutions Fit for Your Unique Case
No two individuals, or their cases, are ever identical. We seek to provide viable solutions that your unique case deserves.
Constant Client Communication
You won't be out of the loop! We make sure all of our clients are up-to-date with the status of their case.
Why pay to have a conversation? Our phone, video and in-person consultations are 100% complimentary.
About Our Firm
Financial Relief Law Center is prepared to assist you with bankruptcy, foreclosure, and more.
Meet the Team
Learn more about our results-oriented team that is committed to helping you with your legal issues.
Access more information about credit counseling and resources for bankruptcy and loan modifications.
Stay in the know about recent news and updates concerning our firm and our specialized legal areas.
We take you and your case seriously. Contact us today for a free initial consultation and we will get back to you shortly!We Serve Most Counties throughout California!