You may still have to deal with certain debts, known as your non-dischargeable debts, after bankruptcy. Follow along to find out why.
If you are like most small business owners, one of the most important things in your life is ensuring your business’s profitability. Unfortunately, small businesses sometimes struggle. Whether your business is struggling due to a bad break, strategic errors, or otherwise, if you’re having trouble maintaining profitability, or you’re currently in a significant amount of debt, you’re likely looking for a solution–and fast. Fortunately, you do have options, and one of those options may be Subchapter 5 bankruptcy. To learn more, read on and contact a seasoned Kentucky Subchapter 5 bankruptcy lawyer from Schwartz Bankruptcy Law Center today.
Though most legal proceedings don’t technically require the involvement of an attorney, you’d always be best served with a seasoned Louisville, Kentucky business bankruptcy lawyer in your corner. Subchapter 5 bankruptcy is an addition to Chapter 11 of the United States bankruptcy code and is meant to help struggling small businesses survive and, eventually, prosper, through a streamlined (and often cheaper) form of reorganization bankruptcy. Schwartz Bankruptcy Law Center is familiar with the intricacies associated with Subchapter 5, and we are prepared to put our knowledge and dedication to our clients to work for you as well.
Currently, small businesses with a total debt of up to $7.5 million may qualify for Subchapter 5 bankruptcy. However, they must first show that at least 50% of their pre-petition debts were a result of commercial business activities and that they are not a single-asset real estate business. Simply put, this means that they must not derive the majority of their income from the operation of a single piece of real estate.
As long as your business qualifies, we will file a Chapter 11 petition and elect Subchapter 5. You and your Subchapter 5 bankruptcy lawyer will then file your business-related documents with the court. From there, we’ll create a plan of reorganization and file it within 90 days of filing your petition. As long as a Subchapter 5 U.S. trustee approves your reorganization plan, you should be in the clear to continue operating your business with a far more manageable structure to pay off your debts.
Just some of the advantages of Subchapter 5 over other types of bankruptcy include not having to pay quarterly U.S. trustee fees, not having to deal with unsecured creditor committees, and not having to worry about the absolute priority rule. Finally, your reorganization plan may be approved with your creditors’ agreement.
The bottom line is that Schwartz Bankruptcy Law Center is here to help your business survive and become profitable once again. We are dedicated to helping small business owners here in Kentucky, and we’re here to fight for you as well. Contact us today so we can get started working on your case.
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