Chapter 11 Bankruptcy Attorney in Miami
Chapter 11 is a reorganization generally filed by corporations who need time to restructure their debts. Chapter 11’s are the most complex of all bankruptcy cases and generally involve sophisticated parties on all sides.
How Does Chapter 11 Bankruptcy Work?
In Chapter 11, the debtor proposes a plan to pay their creditors – often for much less than what is owed. In certain cases, the debtor is able to restructure secured debt in order to reduce periodic payments to more feasible terms.
Chapter 11 can be used to reject undesirable contacts or leases or to simply allow a debtor some breathing room to regain cash flow. There are many different reasons for filing a Chapter 11 and careful consideration should be taken in planning appropriately before circumstances become out of control.
Subchapter V Bankruptcy
Effective February 19, 2020, The Bankruptcy Code was amended to add “Subchapter V” to Chapter 11. Subchapter V bankruptcy provides a streamlined Chapter 11 proceeding for small businesses and individuals with debts under $2,725,625 (As part of the CARES Act passed March 27, 2020, the debt limit was temporarily increased to $7,500,000 until March 27, 2021).
Subchapter V is similar in many respects to Chapter 13 bankruptcy. A trustee is appointed to provide financial oversight and advice to the debtor in proposing a plan and in some instances, is responsible for distributing the plan payments.
Unlike Chapter 11, creditors do not have the ability to vote for or against a Subchapter V debtor’s plan. So long as the plan meets certain Bankruptcy Code requirements, it will be approved.
Subchapter V is also a viable option for individual debtors who may not fall under the debt limitations of Chapter 13 and cannot afford the costs of Chapter 11.
Call Our Experienced Chapter 11 Bankruptcy Attorney Today!
Schatzman & Schatzman, P.A. is a respected bankruptcy law firm located in Miami, Florida. We have successfully helped many South Florida businesses and consumers obtain debt relief to strengthen their financial futures. With over 31 years of bankruptcy and litigation experience, we maintain a high standard of quality service provided to our clients.
You can trust that your case will be managed diligently by an experienced bankruptcy attorney with the expertise and knowledge to find the best solution for your specific needs.