Business owners, probably like most other individuals, observe filing for bankruptcy as the end of their independence. On the contrary – bankruptcy helps you get out of debt and regain your financial freedom. And, if you’re a small business owner, Subchapter 5 of Chapter 11 bankruptcy in San Diego might be just the ticket out of your current troubles. However, not all business owners are familiar with the many benefits of Subchapter 5.
What are the benefits of Subchapter 5?
If you’re just pondering filing for bankruptcy, not really sure if you’re ready for such a step, or perhaps thinking it would be a total defeat of your life – think again! Subchapter 5 bankruptcy is one of the best ways for small business owners to eliminate their debt and get back on their feet fast. Don’t believe us? Maybe these direct benefits of Subchapter 5 will convince you:
It’s for actual small businesses
Do you know how Chapter 11 was for businesses, small and large? Well, Subchapter 5 is for small business owners through and through. This means that this form of bankruptcy is specifically designed to provide financial relief to owners of small businesses, protecting their assets and allowing them to remain in control of them even with the appointment of a trustee.
It allows the operations to continue
Small businesses depend on their continual operations, and this is exactly what Subchapter 5 allows the owner to do. As long as you continue to stick to the repayment plan approved by the court, your business continues to run without any problems or catches. This means you get to live your normal life through your bankruptcy, all the while repaying your debt easily.
It doesn’t require creditor approval
Traditional Chapter 11 requires the creditors to approve the repayment plan. None of that with Subchapter 5. If the court approves the plan, that’s it – the creditors have no say. This allows small business owners to formulate a favorable plan that’s between them and the court, without the involvement of pesky creditors.
It doesn’t require a disclosure
Standard Chapter 11 requires the debtor to file a complete, accurate, and detailed disclosure with the court. This statement offers a breakdown of the business. However, Subchapter 5 eliminates such actions and allows you to propose a reorganization plan without providing such details about your operations.
It features reduced fees
SBRA reduces the associated fees and costs for the business owner filing Subchapter 5. They are usually exempt from paying trustee fees and they receive lowered administrative costs. This makes it easier for small businesses to bring their finances back on track through bankruptcy. Also, all these expenses can be paid in installments through the proposed plan.
Which reputable lawyers can help me with my Subchapter 5 of Chapter 11 bankruptcy in San Diego, CA?
Subchapter 5 of standard Chapter 11 bankruptcy can introduce numerous benefits into your life, especially if you’re familiar with its basic details and what Subchapter 5 entails. However, you might be better off filing Chapter 11 due to the advantages it brings and the way it works. Deciding between these two similar, yet different bankruptcies is extremely important, which is why you shouldn’t do it on your own.
Instead, turn to professionals at the Bankruptcy Law Offices of Mark L. Miller. Let us make your bankruptcy smooth, seamless, and successful. We’re a team of qualified and experienced pros who like what we do and do it well. What’s more, we’re really nice and pleasant to talk to. That’s what makes us different. That, and our success rate. We’re near Mormon Battalion Historic Site, so feel free to come to our address for a free-of-charge consultation.