COVID-19 Notice: We want to assure you that we remain open to help you manage any personal or small business financial challenges that may occur due to Governor Baker's March 24, 2020 Order requiring all "non-essential" businesses to close. Recent changes in the Court rules now allow us to teleconference and file your case without you ever having to leave your home. Please give us a call to schedule a virtual consultation (video, phone, or email) or if you have any questions.

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Massachusetts Bankruptcy Legal Assistance Crush Your Debt with Our Debt Relief Attorney Today

Chapter 11 Bankruptcy Attorney

Eliminate Business Debt. Call Our Bankruptcy Firm: 888.400.9318!

Is your small business struggling under excessive debt? Don't shy away from bankruptcy as an option for finding a resolution. There are many benefits to bankruptcy that make it a viable option for eliminating your debt. The bankruptcy process was specifically designed by the government to be a legal way for consumers and business owners to discharge debts that they cannot afford to repay. Find out if this is the right bankruptcy option for your unique situation!

Why Choose Our Chapter 11 Bankruptcy Lawyer?

  • Knowledgeable, Proven Guidance Since 2000
  • Has Helped Hundreds of Clients Successfully Navigate Debt Relief
  • Formerly Named “Lawyer of The Year” by Massachusetts Lawyers Weekly
  • Top Rating of Superb on Avvo

Glenn F. Russell Jr. & Associates P.C. has helped numerous clients through the bankruptcy process. We can help you understand the different types of bankruptcy for which you may qualify and can guide you step-by-step through the process. We can also help you with bankruptcy exemptions to ensure that you are able to keep as much of your property and belongings as possible.

Call (888) 400-9318 or use our online form today to schedule your initial consultation!

What Is Chapter 11 Bankruptcy?

There are several types of bankruptcy under the U.S. Bankruptcy Code. Chapter 7 and Chapter 13 of this code are for consumers, but Chapter 11 is for small business owners. Essentially, filing bankruptcy under chapter 11 allows you to "reorganize" your debt and keep your business open while your debts are repaid or discharged.

Under this chapter, you – the "debtor in possession" of your business – will sit down with your creditors and work out a repayment plan. This includes determining how long you have to repay your debts before the remainder is discharged. Once your plan has been determined, you must bring it before the bankruptcy court to be entered. You will then continue to operate your business and make payments on your debt (according to the plan) until the repayment term is complete. Your remaining eligible business debts will then be discharged.

What Are the Benefits of Chapter 11 Bankruptcy?

Chapter 11 bankruptcy has many benefits when compared to your other options. Chapter 7 requires you to sell everything and repay as much of your debt as possible before the rest is discharged.

Filing under Chapter 11 has the following benefits:

  • Your business remains open
  • You do not have to sell your business or inventory
  • You have time to reorganize and re-strategize
  • You repay some of your debt over time (less damage to your credit)
  • Any remaining debt is discharged after your payment plan is up

Chapter 11 for Small Businesses: Subchapter V

In recent decades, small businesses have not seen the same number of benefits from Chapter 11 as their corporate counterparts. Chapter 11 has been too expensive and too complex for small business owners, and many of them have been forced to liquidate their businesses through Chapter 7 instead.

To address this issue, Congress passed the Small Business Reorganization Act of 2019, which took effect in February of 2020. The act created Subchapter V within Chapter 11, a subchapter that is exclusively available to small businesses.

If you file under Subchapter V, you can experience the following benefits:

  • Minimized time and cost of reorganization
  • The opportunity to propose the repayment plan yourself
  • No need to obtain approval from creditors
  • No creditors’ committee or disclosure statements
  • Potential mortgage modification of your primary residence

To qualify as a small business, you must have no more than $2,725,625 of debt*, at least 50% of which must have been accrued through business or commercial activities.

*COVID-19 NOTICE: Per the CARES Act, the debt threshold for Subchapter V is $7,500,000 until March 27, 2021.

Speak with a Massachusetts Bankruptcy Attorney Today

Glenn F. Russell Jr. & Associates P.C. is here to help. No matter what your financial situation is, our compassionate and knowledgeable team will help you understand your options and will guide you toward a future without debt.

Contact us today at 888.400.9318 for an initial consultation!

Reasons Why People Hire Glenn F. Russell Jr. & Associates P.C.

  • Extensive Knowledge

  • Unique Experience

  • Aggressive Approach

  • Unparalleled Results