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!

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The Law Office of Glenn F. Russell, Jr. 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.

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.

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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.

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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.

Speak with a Massachusetts Bankruptcy Attorney Today

The Law Office of Glenn F. Russell, Jr. 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.