Benefits of Subchapter V
Chapter 11 bankruptcy can be extremely helpful for many businesses, but the timeline and costs associated with filing can be prohibitive to smaller businesses on the brink of going under. Subchapter V introduces many distinct advantages over a traditional Chapter 11 filing for those who qualify. Our Springfield Subchapter V attorneys can evaluate your eligibility and determine if this newer alternative makes sense for you or your company.
Advantages to filing for bankruptcy under Subchapter V include:
- Lower costs. Subchapter V was designed with small businesses in mind, so there are fewer expenses associated with the process. This allows more smaller enterprises to seek relief through bankruptcy.
- More control. Chapter 11 bankruptcy typically gives creditors and other interested parties the ability to dispute the plan proposed by the debtors as well as file their own plan. Resolving these conflicts can result in exorbitant delays. Subchapter V empowers debtors to develop plans that can proceed without needing creditor approval. Filers also have the option to pursue a multiyear projected disposable income payment plan instead of a consensual plan.
- Streamlined process. Subchapter V filers do not have to provide a disclosure statement, and a creditor committee is generally not assembled. Avoiding these sources of objections allow the bankruptcy to proceed more efficiently than a typical Chapter 11 bankruptcy.
Your Partner in Bankruptcy
Our team at Licata Bankruptcy Firm PC understands that you have put blood, sweat, and tears into your small business. Our Springfield Subchapter V lawyers can help your venture make the most of the institution’s advantages and get you the debt relief that you need. Our firm practices exclusively in bankruptcy, and our team has years of hands-on experience helping companies efficiently and effectively reorganize. Subchapter V opens up bankruptcy to even more businesses at a more affordable price, giving your organization the ability to overcome seemingly insurmountable debt and emerge even stronger than ever.