CHAPTER 11 BANKRUPTCY

The Law Office of Charles A. Higgs filed the first Subchapter V, Chapter 11 Bankruptcy Case in the Southern District of New York under the Small Business Reorganization Act. The Small Business Reorganization Act, which went into effect on February 19, 2020, added the option for small businesses to file bankruptcy under newly enacted Subchapter V of Chapter 11 of the Bankruptcy Code. Subchapter V provides small businesses with a number of benefits that were not previously available in Chapter 11 bankruptcy cases, including allowing equity owners to retain their interest in the business without paying creditors in full, allowing a plan to be confirmed without the consent of any creditors, and extending the time to pay certain administrative claims.

The Law Office of Charles A. Higgs has represented businesses in a wide variety of industries, including Real Estate, Tech, Medical, Food, and Transportation, in cases under Chapter 11 of the Bankruptcy Code.

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BENEFITS OF CHAPTER 11

 

CONTINUE OPERATING YOUR BUSINESS

In Chapter 11 Bankruptcy you retain control and continue to operate your business, while restructuring the Debts of the Company through a Court approved Chapter 11 bankruptcy plan.

IMMEDIATELY STOPS PENDING LAWSUITS AND COLLECTION ACTIONS

Upon filing the bankruptcy an immediate bankruptcy stay goes into place, the bankruptcy stay immediately stops creditors from proceeding with lawsuits and collection actions.

PROVIDES THE ABILITY TO REDUCE AND RESTRUCTURE DEBTS

Chapter 11 allows you time to negotiate and restructure the debts of the business through a Chapter 11 bankruptcy plan. In Chapter 11 your business can restructure debts over the objection of your creditors, this can include extending the term and reducing the interest rate on certain loans or in some cases paying only a percentage of certain debts.

PROVIDES TIME TO CATCH UP ON RENT

If your business is behind on rent, filing Chapter 11 can give you additional time to get the finances of the business in order and catch up on rent.