Pay your creditors what you can afford, spread over time.
The automatic stay stops all existing litigation and all efforts to collect on your company's debts. The stay comes into being automatically and last through the entire case.
You keep control of your company and control how your company will reorganize.
The impact of the social isolation measures put in place during the pandemic is placing a heavy toll on small businesses like yours. The CARES act with its PPP and EIDL loans has offered some relief, but the recently enacted Small Business Reorganization Act (“SBRA”) made substantial changes to the bankruptcy code to allow small businesses to restructure their business, reduce or eliminate debt and emerge as a successful enterprise.
We are a law firm that focuses our practice on these new reorganization cases, called “Subchapter V” bankruptcies. Subchapter V makes Chapter 11 bankruptcies more affordable and accessible for small businesses.
We know what to look for and what tools to offer as we guide your business to a successful reorganization.
Even though you may never have imagined your business filing bankruptcy, Subchapter V could offer you a lifeline.
The first step is to look at the numbers and understand your unique business problems. We will sit down together and look at your company. If we don't think that Subchapter V is right for your business, we won't hesitate to tell you. This initial consultation is always free.
Next, we'll pore through your company's financials together and prepare a bankruptcy petition that describes your financial situation. Together we will work out a plan that you can afford to get your company out of debt and successfully reorganize.
We file your bankruptcy case, work with the trustee and your creditors, and will lay the foundation to help you get to a new, more stable company.
Look, Chapter 11 doesn’t work for every business.
But you would be surprised how often it lets companies apply their cash to rebuilding their business instead of paying debt with no end in sight. Pressing a pause button on unaffordable debt payments and eliminating waste can free up cash you can use to restructure.
And restructuring can put your business back on track.
You did not build you business by looking for easy solutions, and promises of quick fixes will not get your business back on track. A Chapter 11 plan is backed by the federal courts — once the court approves your plan, your creditors have to accept it.
But the first step is realize you are not alone, and that building a relationship with a trusted advisor offers the best hope for your company’s future.
Our “Cash Flow Spreadsheet” can help you see the impact of debt on your bottom line. It creates a quick pro forma cash flow that lets you look at what your company is diverting from essential operations because of debt and unnecessary leases and contracts, and it gives you some basic tools to examine your company’s situation and look for a path to success.
We are a debt relief agency under federal law. We help people and business file for bankruptcy relief under the Bankruptcy Code.