Small Businesses with under $7.5 million in debt.
Small Business Bankruptcy options include both Chapter 11 filing and Subchapter 5. Subchapter 5 applies to business with less than $2.7 million in debt and allows for reorganization. Depending on the size of your business, Subchapter 5 should be explored. Two new changes to the rule: a judge to enforce the restructuring plan, rather than a creditor and an owner can continue running their business. Congress recently expanded eligibility to businesses with up to $7.5 million in debt, helping save many small businesses.
To file, an entity must have the businesses most recent balance sheet, federal income tax return, statement of operations, and cash flow statement. Even if you do not have the aforementioned items, we recommend reaching out to determine considerations. The Chapter 11 or Subchapter 5 bankruptcy plan must be submitted for approval within 90 days, so the importance of pre-planning is vital. Contacting our office early in the process will be essential to ensure the proper handling of Chapter 11 or Subchapter 5 bankruptcy - rest assured we are here to help you through the process.
Robert N. Grossbart
We at Grossbart, Portney & Rosenberg, P.A. know you do not want to file bankruptcy, but you will be pleased that you contacted us. Since we opened our doors in 1989, we have helped over 10,000 people, from all walks of life, get back their financial health and a fresh start. 2021 Super Lawyers, Best in Bankruptcy, we know how to guide our clients through challenging predicaments with structured guidance, carful analysis, and thoughtful support. We pride ourselves in being your solution architect in your bankruptcy, by strategizing a practical plan, so you can finally get your first restful night of sleep in a long time.