Although the law has only been in place for a relatively short amount of time, businesses in West Michigan and throughout the State have begun to utilize Subchapter V Bankruptcy (Chapter 11), as a means of obtaining relief from current difficult economic circumstances. The advantages of a Subchapter V case are numerous. For example, the law eliminates a number of the requirements and procedures that are normally associated with the larger and often complicated Chapter 11 bankruptcy process, while also offering the same type of reorganizational relief from debts. The plan filing requirements are often less complicated. For example, Subchapter V cases do not require the filing of a separate disclosure statement or the payment of U.S. Trustee quarterly fees. The deadlines are also accelerated in certain respects; for example the law includes a 90 day deadline for a debtor to file a plan, which is substantially less than what occurs in most standard chapter 11 cases. The result is that the process moves more quickly, and is more financially feasible and affordable as an option to address ongoing debt issues.
Attorney Todd Almassian was recently quoted in an article regarding Subchapter V bankruptcy cases, noting that “We’re starting to see an uptick in (SBRA cases) and I think we’re going to see a lot of successful reorganizations now.” See the the article from the ABI linked here.
If you have questions or would like to discuss Subchapter V chapter 11 bankruptcy, please contact us.
