What’s In It For Small Business Owners?
Covid 19 Coronavirus Pandemic Bankruptcy Help – Subchapter 5 Chapter 11 Florida
The New Subchapter V of Chapter 11 Small Business Bankruptcy Florida protection became effective on February 19, 2020. More than just lip service to small business owners, the program was temporarily expanded from $2,725,625 to $7,500,000 under “the C.A.R.E.S. Act”, due to the Coronavirus Pandemic. This vastly expanded the number of small business owners and entrepreneurs that can take advantage of this sweeping change in Small Business Debt Relief.
Just what are the advantages of the Subchapter 5 Chapter 11 Covid-19 Coronavirus Pandemic Small Business Bankruptcy Help in Florida?
Dramatic cost reductions on the cost of filing Chapter 11 Bankruptcy.
- It eliminates the quarterly fees to the US Trustee that’s required in regular Chapter 11 Small Business Bankruptcy Florida.
- There is no mandatory requirement of a creditors committee, saving the debtor the cost of paying legal fees for that committee.
- No mandatory requirement to file a disclosure statement, thus saving attorney fees of the debtor for that portion.
- The ability to confirm a Plan even if all classes reject the Plan, thus saving what can turn into months of additional attorney fees for the debtor.
- The ability to pay administration expenses over time under the Plan, thus easing up front costs and cash flow requirements.
- The elimination of the “Absolute Priority Rule” which allows the owners to retain ownership without paying all creditors in full.
- The exclusive right to file a Plan (which cannot be terminated); thus avoiding costly battles before the Court by creditors trying to impose their own preferences in a Plan.
What is another advantage of the Subchapter 5 Chapter 11 Covid-19 Coronavirus Pandemic Small Business Bankruptcy Help in Florida?
Another advantage of the Subchapter 5 Chapter 11 Covid-19 Coronavirus Pandemic Small Business Bankruptcy Help in Florida that is especially helpful to those who took loans against their home to finance and/or operate the business, Subchapter V provides the ability to modify or strip down a claim secured only by a security interest in the debtor’s principle residence as long as the funds were used primarily in connection with the business and not primarily to acquire the home.
If you are struggling with cashflow and/or debt issues as a result of the recent economic woes brought about by Covid-19, and would like to receive more information on the Subchapter 5 Chapter 11 Covid-19 Coronavirus Pandemic Small Business Bankruptcy Help on the Treasure Coast of Florida, contact Small Business Chapter 11 Bankruptcy Attorney in Palm City Jon L Martin.
With offices in Port St. Lucie and Palm City, Jon L. Martin has represented individuals and entities in the cities of Hobe Sound, Jensen Beach, Palm City, Port Salerno, Port St. Lucie, Stuart, Vero Beach, Sewall’s Point, Hutchinson Island, and Sebastian.