Search Site
Menu

Is Your Small Business Considering Chapter 11 Debt Reorganization Due to the Pandemic?

With small businesses facing crushing losses due to pandemic-related closures, many are struggling to keep going. For some, low-interest loans and new tax credits will provide enough sustenance to survive the crisis, depending on how long the slowdown lasts. Others might find that reorganizing their debt load through Chapter 11 bankruptcy is the best option going forward.

If you are considering bankruptcy for your small business but want to keep the doors open, you should understand these aspects of Chapter 11 bankruptcy:

  • Methods used in reorganization plans — Under Chapter 11, businesses big and small have the opportunity to restructure payment terms, internal operations and existing agreements to help satisfy debts owed to creditors. Your court-approved plan may reduce your overall obligation and establish in place a payment plan based on your income and assets.
  • Reduced costs, expedited processes for small businesses — Up until March 2020, small businesses that owed more than roughly $2.75 million were ineligible for Chapter 11 relief unless a creditor committee was created and approved a reorganization plan. However, under the Coronavirus Aid, Relief and Economic Security Act (CARES Act), a small business can owe up to $7.5 million without having to persuade creditors. In addition to streamlining the process, debtors can save on the fees associated with a potentially contested hearing and costs the committee expends on lawyers and other professionals with relevant knowledge.
  • Control and oversight — Unlike Chapter 7, Chapter 11 allows debtors to retain control of their business without having to liquidate their assets. Businesses operating under Chapter 11 are overseen by a court-appointed trustee, whose job it is to ensure that the debtor is following the terms of the reorganization.

If you are considering bankruptcy, know that it can offer an opportunity to save your business. You can increase the chance for a favorable outcome by hiring a skilled attorney who has successfully represented businesses in bankruptcy matters. An experienced bankruptcy lawyer will also be familiar with the latest legislation related to COVID-19 and economic relief.

Contact a knowledgeable bankruptcy lawyer to schedule a consultation

Jeff Field & Associates advocates on behalf of clients seeking debt relief through Chapter 11 bankruptcy. Please call 404-381-1278 or contact the firm online for a meeting to discuss your situation.

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • lawyers
    5.0/5.0

    Jeff Field & Associates, guided me through my Chapter 13 very smoothly. All my accounts and debt are paid off and my credit scores are all above 700! I highly recommend Jeff Field & Associates.

    Read more

    Client

  • lawyers
    5.0/5.0

    There are several words that come to mind when I think of Jeff Fields & Associates, Athens GA, however, I would just list a few. Some of them ate Professional, factual, caring, compassionate, timely, supportive, and detailed. I found myself in a situ...

    Read more

    Client

  • lawyers
    5.0/5.0

    Mr. Fields and his staff was very professional and they explained everything so it was clear to me and they made sure I understood the process. I would recommend they to all my family and friends especially if they need a very good financial relief l...

    Read more

    Client

  • lawyers
    5.0/5.0

    I had an Impeccable experience with Mr. Fields and his associates! I cannot express my gratitude to them. I called for my free consultation and got an appointment that same week. Mr. Fields answered all my questions and listened to my situation thoro...

    Read more

    Client

  • google
    5.0/5.0

    It was definitely a process due to the COVID pandemic but I am so glad I chose Jeff Fields and Associates. Everyone from the office that I worked with was always polite and responsive to all my questions and needs. I was hesitant on filing because I ...

    Read more

    brandoncade928

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form