Los Angeles Subchapter V Bankruptcy Lawyers
Streamlined Debt Restructuring for Small Businesses
Small businesses struggling with debt can find significant financial relief through Subchapter V bankruptcy, a provision of the U.S. Bankruptcy Code designed specifically for small business debtors. Introduced by the Small Business Reorganization Act of 2019, Subchapter V streamlines the bankruptcy process, making it faster and less costly compared to traditional Chapter 11 proceedings. It allows small business owners to retain control of their operations while restructuring their debts under a court-approved plan.
At Weintraub Zolkin Talerico & Liu LLP, our experienced lawyers can provide assistance with Subchapter V bankruptcy, guiding small business owners through every step of the process. From the initial assessment of your financial situation to the filing of the bankruptcy petition, our team can ensure that all necessary documentation is prepared and submitted. Our Subchapter V bankruptcy lawyers in Los Angeles can also develop a feasible reorganization plan tailored to your business’s unique needs, aiming to maximize debt relief while allowing you to maintain control of your operations.
If you’re ready to explore a different way of dealing with your company’s debt, call and request a consultation.
How Is Subchapter V Different from Chapter 11 Bankruptcy?
Subchapter V is a subset of bankruptcy relief under Chapter 11 that was specifically crafted for small businesses in order to simplify, expedite and substantially reduce the costs associated with the traditional Chapter 11 bankruptcy process.
The following are some key differences between Subchapter V and traditional Chapter 11:
- Eligibility: Subchapter V is limited to small business debtors with debts below a certain threshold (currently $3,024,725), while Chapter 11 is available to businesses of any size with no debt limit.
- Cost and time: Subchapter V is generally less expensive and faster due to simplified procedures and reduced administrative requirements compared to the more elaborate traditional Chapter 11 process.
- Trustee involvement: In Subchapter V, a trustee is appointed to facilitate the reorganization process and assist with negotiations, whereas in Chapter 11, a trustee is only appointed in cases of fraud or mismanagement.
- Absolute priority rule: Subchapter V eliminates the absolute priority rule, allowing business owners to retain their equity even if creditors are not paid in full, provided they propose a fair and feasible repayment plan. In traditional Chapter 11, the absolute priority rule often forces owners to lose their equity unless all creditors are fully paid.
- Plan confirmation: Subchapter V allows for plan confirmation without creditor approval if the plan is deemed fair and equitable, whereas traditional Chapter 11 requires at least one class of impaired creditors to vote in favor of the plan.
As is evident from the above, there are some considerable differences at work. If you are unsure if you or your business qualify for Subchapter V, or if you know it is right for you or your business, consult with our Subchapter V bankruptcy attorneys in Los Angeles for more information.
Why Choose Weintraub Zolkin Talerico & Liu LLP?
As a discerning business owner, you know you have your options when it comes to legal representation. Even so, it can be difficult to determine to whom you can entrust such an important matter. Rest assured that among our clients, we at Weintraub Zolkin Talerico & Liu are considered trustworthy and skillful legal advocates.
A few of the reasons why our clients choose us include the following:
- We value honesty and integrity when it comes to our clients.
- Our legal team has decades of experience.
- We offer flexible fee arrangements.
- We love working with small and mid-sized business owners.
If you’re ready to take the next step, don’t hesitate to reach out to Weintraub Zolkin Talerico & Liu. By contacting us today, you can help yourself and your company move past the crippling nature of overwhelming business debt and move toward the brighter and healthier path of debt relief.
Send us a message online to request a consultation with our Subchapter V lawyers in Los Angeles.
