At The Romano Law Firm, we provide skillful legal advocacy for individuals, families, couples, and businesses experiencing financial hardship. We understand the ins and outs of bankruptcy, and we are here to be a source of guidance, reassurance, and peace of mind for you, your loved ones, or your organization. Since 2003, we have helped thousands of people through the process of bankruptcy while protecting their best interests at every turn, and we are prepared to do the same for you, beginning with a complimentary case evaluation.
Call (216) 621-7777 to connect with a member of our team and schedule your free, no-obligation consultation with experienced Cleveland bankruptcy lawyer Joe Romano, Esq.
Subchapter 5 is a recently enacted piece of legislation designed to make small business bankruptcy more expeditious and less costly to the filing party. “Subchapter 5” generally refers to the Small Business Reorganization Act (SBRA), which was passed by Congress on February 19, 2020.
Relief under Subchapter 5 is available to persons and entities with a total debt that is equal to or less than $2,725,625.00. (Persons whose debts are related to a single real estate asset are not eligible to obtain relief under Subchapter 5.) If the court permits you to reorganize under Subchapter 5, you will remain in possession of your property and work with a court-appointed trustee to formulate a reorganization plan. The trustee in your case will also hold you accountable for making payments on time, attending important hearings related to your case, and so forth.
There are several key benefits to filing under Subchapter 5. First of all, the trustee’s role is such that it is not necessary for your creditors to form a committee, and much time and energy are saved by circumventing the process of committee review, voting, and approval or denial or your proposed reorganization plan. The timeline for Subchapter 5 bankruptcy is also significantly expedited and may only take a few months to complete.
Ultimately, your reorganization plan is subject to the court’s review and final approval, which is more quickly and easily gained under Subchapter 5, due to the following changes:
Bankruptcy is complex and challenging, but these and other changes made by Subchapter 5 can make it possible for your small business to undergo bankruptcy quickly and come out the other side unscathed. When you call The Romano Law Firm for help, we are prepared to help you take full advantage of as many of these positive changes as possible in order to protect your business, your livelihood, and your future. We urge you to seek counsel immediately and allow us to be your advocates during this difficult time in the life of your business.