As a result of rapidly increasing interest rates, unabated inflation and ongoing supply chain issues, many business are facing rising debt costs, lower demand and other financial challenges. With no end in sight and no clear governmental policies to address these problems, you may want to be pro active about exploring the options available to help you address these challenges.
Subchapter V of the Bankruptcy Code has become an excellent tool for companies and individuals in business to use who are facing financial problems. At Weintraub & Selth, APC, we have filed several of these cases for our clients with excellent outcomes. Saving businesses and jobs is our top priority.
Subchapter V cases are less expensive for clients to both file and maintain, making Chapter 11 relief more affordable for many clients. In addition, many of the challenges a Debtor might face in traditional Chapter 11 bankruptcy, including the need to secure votes confirming the Plan of Reorganization and for the business owner to find and invest new, fresh cash in order to continue owning the company post bankruptcy do not apply in Subchapter V.
Finally, where a traditional Chapter 11 case might involve the appointment of a creditor's committee, which often makes the case more difficult for the Debtor and always makes the case more expensive for the Debtor, in Subchapter V there are no such committees (except in the rarest of circumstances) and instead the Court appoints a Subchapter V Trustee who can greatly assist the process and at a much more reasonable cost.
If you'd like to know more about how a Subchapter V filing could benefit your business, call me to discuss.