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.
“I ran into a financial issue from my past and was in need of legal direction to take so I could handle a bank account that was levied. I called at 4:30 on a Friday after Christmas and Victor promptly called me back within minutes.”- Patrick E.
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!
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