Sub Chapter V

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Sub Chapter V Bankruptcy Attorney In Doral, Florida

What Is A Subchapter V Bankruptcy?

In 2019, the Small Business Reorganization Act (SBRA) was passed by Congress, leading to the creation of Subchapter V of the U.S. Bankruptcy Code. This legislation aimed at reducing bankruptcy costs for debts of up to $2.7 million, and it became operational in February 2020. Then the coronavirus pandemic struck and Congress, in response, increased the debt threshold to $7.5 million as encompassed in the CARES Act. This move opened doors not only for small businesses but also for slightly larger businesses to reorganize their debts, a majority of which have surged due to pandemic-induced lockdowns. It’s an incredible opportunity for businesses, however, the procedure is intricate and not something you would want to tackle solo.  It is always recommended to seek the advice of a bankruptcy attorney before making any major decisions.


The Small Business Reorganization Act (SBRA) was designed to provide small businesses with a more streamlined and cost-effective way to reorganize their debts through bankruptcy. This legislation, which went into effect in February 2020, created Subchapter V of the U.S. Bankruptcy Code specifically for small businesses with debts totaling up to $2.7 million.


However, just as businesses were beginning to take advantage of this new law, the COVID-19 pandemic hit and caused widespread economic turmoil. In response, Congress passed the CARES Act which temporarily increased the debt threshold for eligibility under Subchapter V from $2.7 million to $7.


At Frank & De La Guardia in Florida, our well-versed bankruptcy attorneys, Rodolfo De La Guardia and Michael A. Frank, have a commendable track record in securing positive results for their clients in Subchapter V proceedings. Reach out to us to find out how we can assist you.

Call Frank & De La Guardia at 305-928-1786 to schedule a consultation with a lawyer today.

How Can a Subchapter V Bankruptcy Help Me?

With Subchapter V bankruptcies, Frank & De La Guardia in Florida, allow your business to manage your debt over a span of three to five years. In this period, disposable income from your business must be used for paying your creditors. This unique arrangement promises a beneficial outcome for both sides as it allows your business to distribute your total debt over an extended period, meaning your creditors recover more of their dues. Maintaining control of your operations and assets is a given, but a third-party trustee will be there to assist you in devising a fair plan with your creditors, striving to ensure an advantageous resolution for all involved. You also have the convenience of spreading your administrative expenses throughout this payment period, enhancing your prospects of paying the full amount over time. This procedure is more direct and typically less expensive than a traditional Chapter 11 bankruptcy. If this sounds like the opportunity for a fresh start you've been looking for, reach out to Frank & De La Guardia today.

Discover If Subchapter V Is the Best Solution for Your Business

If your business has been impacted by the coronavirus pandemic or other situations, Subchapter V could provide a beacon of light. Sit down with Michael A. Frank or Rodolfo De La Guardia, our seasoned bankruptcy attorneys, to explore your alternatives. If a Subchapter V proceeding turns out to be your top choice, you'll have the assurance of Frank & De La Guardia standing with you every step of the way. 


Subchapter V is a relatively new chapter under the United States Bankruptcy Code specifically designed for small businesses. It was enacted as part of the Small Business Reorganization Act (SBRA) in 2019 and provides an efficient and cost-effective way for qualifying small businesses to restructure their debts and continue operations.


One of the key benefits of Subchapter V is that it allows small business debtors to retain ownership and control of their company while developing a repayment plan with input from creditors. This can be especially appealing for business owners who are passionate about their company and want to see it survive despite financial challenges.



Let us assist in propelling your business forward - even in these trying times. Schedule a consultation to meet with one of the members of Frank & De La Guardia in Florida today.

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Disclaimer: We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.

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