Late in 2019, Congress enacted the Small Business Reorganization Act. That Act went into effect in February of 2020 and provided for a new kind of bankruptcy called Subchapter V. A Subchapter V is a hybrid between Chapter 13 and Chapter 11, allowing small businesses a quicker and less expensive way to restructure their debts. Subchapter V is available for individuals, corporations, limited liability companies and other entities whose debts are less than $7.5 million.
The law is set up to get businesses in and out of bankruptcy far more quickly than Chapter 11 while keeping many of the benefits of a larger reorganization (and eliminating some of the pitfalls). In this new world where so many businesses have been negatively impacted by the Corona pandemic, Subchapter V will provide the opportunity keep your business.
Aronson Law Group already has experience with this new kind of bankruptcy. Call today to see if Subchapter V can help your business.