As a small business owner, you have dedicated your life to building and managing your company, but financial pressures are an unavoidable part of owning your own enterprise. Experiencing a sudden downturn or an unmanageable accumulation of debt does not mean your venture must end. Federal law provides legal pathways designed specifically to help you stabilize your finances, protect your assets, and restructure what you owe.
A Spring Lake Heights small business bankruptcy lawyer can help with reclaiming control of your future. At Gillman Capone, we have more than 25 years of experience helping small business clients navigate financial uncertainty. Our dedicated business bankruptcy attorneys understand how hard you have worked and provide the tools to help make the law work for you.
If a small business becomes hindered by debt payments but remains operational, the Small Business Reorganization Act may offer a solution. Designed specifically for small businesses with debts below $2.75 million, Subchapter V of Chapter 11 of the United States Bankruptcy Code presents an affordable, less-complex path for the business to retain control of its operations. Subchapter V pairs a business with a court-appointed trustee to create a manageable three-to-five-year debt repayment plan using disposable income. This could immediately stop any collection actions, lawsuits, or the potential for a commercial eviction.
By electing Subchapter V treatment, small businesses avoid being treated like large corporations under a Chapter 11 petition and have reorganization options that fit their unique needs. Subchapter V allows a small business to discharge debt under a confirmed plan after completion of the payments. It also eliminates the need to file a Chapter 11 disclosure statement, which costs thousands of dollars. The help of a Spring Lake Heights attorney can save significant time, money, and resources when filing your small business for bankruptcy.
A small business debtor must file a Subchapter V plan within 90 days of the bankruptcy petition. The Bankruptcy Court may only extend this deadline in limited situations where the circumstances are beyond the debtor’s control. The Plan must include information such as a liquidation analysis and projections of the ability of the debtor to make payments under the plan.
In a small business debtor case, the debtor has exclusive right to file its plan within the first 120 days of the filing of the bankruptcy petition. The court may extend the 120-day deadline if the debtor shows that it is reasonably likely a plan will be filed and confirmed. Our attorneys in Spring Lake Heights can help expedite this process for small businesses going through bankruptcy.
In the case of a sole proprietorship where business assets and commercial debts are owed personally, the United States Bankruptcy Code offers a mechanism for relief. Chapter 13 allows a sole proprietor to propose a manageable repayment plan to distribute future income to creditors over an extended period of up to five years pursuant to 11 U.S.C. § 1322(d), protecting personal assets and business property from foreclosure or repossession.
After facing financial challenges in your local business, move toward effective and affordable relief with the help of a knowledgeable bankruptcy attorney instead of navigating it on your own.
By partnering with a Spring Lake Heights small business bankruptcy lawyer, you can focus on your business plan while we focus on securing your financial future. Give Gillman Capone a call today for your free case evaluation.
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