Dependable Subchapter 5 & Chapter 11 Bankruptcy Lawyers in San Diego
We’re Chapter 11 & Subchapter 5 attorneys you can depend on
Bankruptcy Law Offices of Mark L. Miller specializes in providing business owners comprehensive assistance with their bankruptcy claim. We are qualified and experienced Chapter 11 and Subchapter 5 bankruptcy attorneys who cater to small business owners across San Diego and California. Contact our offices and our team of attorneys will perform a detailed liquidation analysis and design a realistic and manageable repayment plan. Next, we will prepare your debt reorganization plan to meet the 90-day deadline. Finally, we will provide legal representation at the status conference.
Chapter 11 vs. Sub Chapter 5
Chapter 11 is a bankruptcy that allows businesses to reorganize their debt when facing serious financial difficulties. It offers large corporations an opportunity to restructure their debt by creating a manageable repayment and reorganization plan. Subchapter 5 was added to Chapter 11 bankruptcy in 2019, allowing businesses with less obligations to restructure and repay their debt via less procedural requirements and expenses than a regular Chapter 11.
The main difference is that traditional Chapter 11 remains for companies with debt that exceeds $2,750,000 million. At the same time, the Small Business Reorganization Act of 2019 introduced Subchapter 5 that allows small and large companies with less debt to reap many of the same benefits of Chapter 11. Bankruptcy Law Offices of Mark L. Miller will explain which type of business bankruptcy is best for your situation and help you resolve your financial problems quickly, efficiently, and successfully so your business can continue operating and enter into a repayment plan.
|Benefits of Chapter 11||Benefits of Subchapter 5|
|Traditional Chapter 11 brings these advantages:
||Subchapter 5 in Chapter 11 provides the following benefits:
Why file bankruptcy under Subchapter 5 in Chapter 11
The Small Business Reorganization Act of 2019 went into effect in February 2020 and offers businesses the relief needed with less costs and procedural requirements. Under this Act, small business owners can reorganize and restructure debts in a less costly process compared to traditional bankruptcy filings. Finally, the Act allows you to streamline the entire bankruptcy process, eliminate some associated administrative costs, and provides debtors the breathing room needed to effectively manage debt.
Most important changes to Chapter 11 bankruptcy introduced with Subchapter 5
The Small Business Reorganization Act has introduced the following changes:
- The total secured and unsecured debts must be under $2,725,625.
- A trustee who will not have a role in the daily operations of your business will be appointed. They will collect and ensure payments are paid to your creditors under the terms of your reorganization plan.
- A status conference will be held within 60 days of filing, unless extended for good cause.
- Reorganization plan is filed within 90 days, unless an extension is granted. A disclosure statement is not required, but you will have to provide an analysis of the asset liquidation value and a projection of how you will make ongoing plan payments.
- Rights of a secured lender and lien on your home may be modified if funds from the loan were used or connected with the business and not to purchase the residence.
- The Act removes the “absolute priority” rule. This means that business owners may keep the equity in their business and use their disposable income to pay down debts over a period of three to five years.
- Administrative expenses may be paid over the duration of the plan.
- Discharge of debts addressed under the repayment plan is granted when you complete payments.
For all additional questions about the changes the Small Business Reorganization Act has introduced, contact Bankruptcy Law Offices of Mark L. Miller.
Do I qualify for Chapter 11 and Subchapter 5
Chapter 11 and Subchapter 5 are bankruptcies designed to help limited liability companies (LLCs), partnerships, and corporations resolve their financial difficulties. However, even individuals who are unable to qualify for Chapters 7 or 13 are able to attempt to file for Chapter 11 in San Diego, as well as Subchapter 5.
Qualifying for Chapter 11 and Subchapter 5 involves formulating your reorganization plan that has to fit two important criteria:
- Your plan has to be structured and developed in good faith, which means it has to be honest and with the best intentions. Courts will carefully review all the paperwork you submit to determine if your plan was created according to these guidelines.
- The plan has to conform to all the applicable laws, court orders, reformed laws, Bankruptcy Code, and Bankruptcy Rules.
Besides creating a plan you will also have to:
- Assist your lawyers in preparing a detailed disclosure statement that contains the state of your financial affairs, list of creditors, and a schedule of liabilities, assets, current expenditures, and income.
- Handle creditors and Proofs of Claim
- Attend the status conference
- Attend the confirmation hearing
This procedure is complicated. Contact Bankruptcy Law Offices of Mark L. Miller. We handle all the vital aspects of a successful bankruptcy claim and ensure you receive a fresh financial start.
Get started with your Subchapter 5 in Chapter 11 bankruptcy in San Diego today!
Reach out to San Diego’s leading Chapter 11 bankruptcy attorneys – your business is too important to wait! To learn more about how the upcoming Small Business Reorganization Act may affect your bankruptcy filing, contact the Law Offices of Mark L. Miller.
Frequently Asked Questions
Chapter 11 includes complete reorganization of debtor’s assets, debts, and other business affairs. This bankruptcy is common among corporations who need additional time to restructure their finances and debt.
This chapter is the most complex type of bankruptcy and it can also be the most expensive. It requires a thorough analysis of the company’s current financial affairs and careful design of a bankruptcy plan.
Therefore, you should consult with experienced Chapter 11 bankruptcy attorneys in San Diego to help make the process streamlined and stress-free. Bankruptcy Law Offices of Mark L. Miller will provide assistance with your claim.
Subchapter 5 is a new addition to Chapter 11 bankruptcy that makes this type of reorganization bankruptcy more accessible to smaller businesses. This subchapter became active in 2020, allowing small business owners who are able to earn a profit, but are having difficulties with paying obligations, to pay their debt through a process similar, but simpler than traditional Chapter 11.
Businesses that want to file this Subchapter 5 are able to force their creditors into accepting court-approved repayment and reorganization plans that last three to five years. Also, they are able to use this plan and get rid of a portion of unsecured debt.
It is more common for individuals to file either Chapter 13 or Chapter 7 bankruptcy. However, a person can also file Chapter 11 bankruptcy in case their debt exceeds the amounts allowed under other types of bankruptcies. So yes, an individual can be eligible for filing bankruptcy under Chapter 11 and Subchapter 5 in Chapter 11.
The debts that can be discharged in these bankruptcies depend on whether the debtor is an individual or is a business.
- Individuals receive a discharge from all pre-confirmation debts, except for those debts that would not be eliminated in Chapter 7.
- The discharge that businesses (non-individuals) would receive depends on whether their Chapter 11 plan is going to liquidate or reorganize the business.
- Reorganization plan discharges all debts that are scheduled and incurred pre-confirmation will be wiped out, without exception.
- Liquidation plan does not allow for discharge if the debtor stops doing business after consummation of the plan.
Yes, you can keep your home during Chapter 11 and Subchapter 5 bankruptcy as it allows you to reorganize your finances, including your mortgage, which allows you to retain your home. However, in order to reorganize your debt adequately and to confirm the best type of bankruptcy for your unique situation contact Bankruptcy Law Offices of Mark L. Miller for legal advice. We will take the steps to protect your interests.
For individuals and small businesses, these cases generally last between 24 months and longer depending on the reorganization plan. However, for large corporations, this type of bankruptcy can take as many as five years to finalize.
Sounds a bit complicated? It is, so hiring an experienced Chapter 11 bankruptcy lawyer in San Diego is a must to help you streamline and potentially speed up the process. Most importantly, a skilled attorney will protect your assets and deal with your creditors.
Generally, the duration of the Subchapter 5 bankruptcy under Chapter 11 lasts anywhere from three to five years, depending on the amount of debt, the desired dynamics of the repayment plan, and the financial capabilities of the debtor.
Bankruptcy Law Offices of Mark L. Miller will help you with your Chapter 11 case. We handle all the details and guide you every step of the way in your bankruptcy case to ensure it’s properly and successfully filed.
Additionally, we are here to help you file Chapter 7 bankruptcy in San Diego or assist you in successfully filing Chapter 13 in local courts. We will also prevent creditors from harassing you, and be there to put a stop to foreclosure of your real estate in San Diego. We will help you get out of debt any way we can.
Our experienced and professional team will handle all the required paperwork, submit it to the court to meet required deadlines, as well as represent you throughout the entire process. We will create a reorganization or liquidation plan, analyze your assets, and be there every step of the way. Contact us today!!!