Subchapter V

Small Business Bankruptcy Lawyers in Jacksonville

Helping You Obtain Financial Relief Under Subchapter V

Is your small business struggling to stay afloat? You might be looking for ways to reduce your company’s debt without going out of business. If you’ve decided you need to file bankruptcy, you generally have two options: Chapter 7 and Chapter 11. However, Chapter 7 will likely liquidate your business, and Chapter 11 has historically been too complex and expensive for small businesses to navigate.

Fortunately, Congress added a new section to Chapter 11, and it became available in February of 2020. This new section is called Subchapter V, and it is only available to small businesses that owe no more than $2,725,625 (although the CARES Act temporarily increased this threshold to $7,500,000 until March of 2021). To qualify, at least half of the debt must have been accrued through business or commercial expenses.

Subchapter V is a streamlined, cost-effective version of Chapter 11, and it allows small companies to restructure and reorganize their debt without going out of business. Our Jacksonville bankruptcy attorneys at Edwards & Edwards, P.A. consider it a privilege to help business owners like yourself take full advantage of this new form of bankruptcy, and we are fully prepared to protect your rights and best interests every step of the way.

To find out whether Subchapter V is right for you, give us a call at (904) 478-9255 or contact us online. We can answer all your questions during your case evaluation.

The Subchapter V Process

Like Chapter 13, Subchapter V is a form of debt reorganization, but it is for business entities instead of individuals. When you file under Subchapter V, you will propose a reorganization and repayment plan that will most likely take 3-5 years, and it must use all your projected disposable income.

Here are a few key differences between Subchapter V and regular Chapter 11:

  • Subchapter V only allows the debtor to propose a plan. In a regular Chapter 11 case, creditors may propose a repayment plan on behalf of the debtor.
  • The court can approve a Subchapter V plan without consent from creditors. In regular Chapter 11 cases, creditors must approve repayment plans before they move forward. Creditor approval in Subchapter V is not mandatory, but keep in mind that it may expedite the relief you receive.
  • Subchapter V does not require creditor’s committees or disclosure statements. Both of these are time-consuming and costly, and the elimination of these requirements is why Subchapter V is a more streamlined and manageable version of Chapter 11.
  • Subchapter V does not implement the Absolute Priority Rule. Chapter 11’s Absolute Priority Rule prevents equity holders and shareholders from retaining ownership interests unless all creditors are repaid in full. Without this rule, Subchapter V is similar to Chapter 13, in that the filer can retain their assets even if some of their creditors are not fully repaid.
  • The Subchapter V process is much faster than Chapter 11. After you file your Subchapter V petition, you must submit your plan within 90 days. The process of obtaining court approval only takes a few months after you submit your bankruptcy petition.

Overall, Subchapter V is much more suited to small businesses than regular Chapter 11. If your goal is to obtain financial relief without going out of business, Subchapter V may be the solution you need—and Jacksonville bankruptcy attorneys at Edwards & Edwards, P.A. is fully prepared to assess your eligibility and help you obtain this relief as soon as possible.

Ready to get started on your case? Request your consultation online or call (904) 478-9255 today. We can schedule same-day services and appointments outside regular business hours.

The Time to Act Is Now

Whether you are struggling with business debts, personal debts, or both, financial hardship is stressful in more ways than one. Our goal at Edwards & Edwards, P.A. is to lift the burden off of your shoulders so you can focus on achieving your goals and building a better future. With more than 50 years of combined legal experience, we have what it takes to develop a fully customized strategy with the highest possible likelihood of success.

Call (904) 478-9255 or contact us online today. We look forward to putting our experience to work for your future.

The Sisters-at-Law are On Your Side

What Sets Us Apart
  • Over 50 Years of Combined Experience
  • Wide Range of Legal Services Available
  • Responsive to Client Communication
  • Sister-Owned Firm, Entirely Run by Women
  • Flexible Payment Plans Available
  • Habla Español

What Our Clients are Saying

  • Extremely professional, very adept, knowledgeable, and timely with my case.

    “The best part was the genuine compassion she should me. Amanda and her firm made my experience through the case the best as possible and I couldn't have asked for anything more!”

    - Jon Radford
  • I would recommend Edwards & Edwards to everybody who needs a lawyer.

    “They are very professional and make every effort possible to win your case. They explain very clearly what will need to be done and help you all the way.”

    - Severine Wider
  • I just absolutely adore Miss Amanda Edwards!

    “Fantastic attorney and extremely personable”

    - Ann Marie Martin
  • Highly recommend working with these amazing people, you won’t be dissatisfied.

    “Amanda was so amazing to work with, on point with her notes and I was able to get my restraining order with no issues.”

    - Courtney Dudo
  • Highly recommend for divorce, child custody, child support, anything family-related.

    “Felecia is an amazing attorney that cares, will fight for your case with everything she has, and will make sure you are informed of what’s happening every step of the way.”

    - Devon White

Results That Speak for Themselves

  • Accomplished Probate, Assisted Asset Liquidation Probate & Asset Liquidation

    An out-of-state client had a death in the family. Probate and liquidation of the estate were required.

  • Criminal Record Expunged & Custody Agreement Revised

    While retained for a custody matter, the client's criminal record was expunged, allowing for revisions to his custody agreement.

  • Accomplished Probate, Assisted Asset Liquidation Probate & Asset Liquidation

    Edwards & Edwards handled the probate and liquidation of real estate holdings on behalf of an incarcerated client.

  • Stay of Foreclosure & Home Retained Foreclosure Defense and Bankruptcy

    The client was retained for foreclosure defense, but after initiating bankruptcy proceedings, foreclosure was stayed and the client was allowed to reorganize their finances and keep their home.

  • Handled All Legal Matters for Family Divorce, Business Partnership Agreement, Probate, & Trust

    Handled various legal matters for one family, including divorce, revision of their business partnership agreement, probate, trusts, and title and closing of multiple residences and assets.

Don't Wait to Receive the Help You need We're Prepared to Help You with All of Your Legal Needs

Don't know where to start when facing a legal matter? Our experienced team of lawyers led by the Edwards sisters is here to assist you. Schedule a consultation with us to discuss your case.

Contact Us Today!