Until just two years ago, small businesses that ran into financial trouble couldn’t find much protection in the bankruptcy system. Reorganization under Chapter 11 was too expensive and filing for Chapter 7 would mean going out of business. Fortunately, today there is another, more useful bankruptcy option known as Subchapter V — a slimmed-down version of Chapter 11 that removes many of the financial and administrative obstacles that used to make that avenue of relief impractical.
Subchapter V, enacted in early 2020, can be a wise choice if your small business qualifies for using it. Georgia small businesses may be eligible for Subchapter V if they meet the following criteria:
The advantages of Subchapter V include the following:
Seeking Subchapter V relief requires filing a Chapter 11 petition and choosing Subchapter V. After filing, you’ll submit a balance sheet, statement of operations, and a variety of other business documents to the court. Finally, you must submit your reorganization plan no later than 90 days after filing your petition.
Jeff Field & Associates has helped many Atlanta-area small businesses take advantage of Subchapter V as a more economical and efficient way to reorganize debt and return to profitability. Our attorneys are ready to assist you. Please call 404-381-1278 or contact us online to schedule a meeting at one of our offices in Athens, Douglasville, Gainesville, Lawrenceville, Marietta or Scottdale.
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