Chapter 11 has effectively been unavailable to help small business owners because of the high costs involved. A new law effective February 19, 2020 changes that! By simplifying the process, attorneys’ and accountants’ fees will be radically reduced, and the company will be able to exit bankruptcy quicker.
More importantly, they will be able to obtain court approval even if creditors don’t approve the plan, and retain ownership of the company, even if they have no large sums to contribute as capital (a requirement of classic chapter 11). Furthermore there is no requirement to pay creditors in full.
Eligible companies include individuals, partnerships, Limited Liability Companies and Corporations, so long as their total debts don’t exceed $2.5 million.
To learn more, see the full article
If you think this new law might help you, please call (718) 442-4424 to schedule an evaluation and strategy meeting.
Paul Hollender has been helping business owners for 43 years.