March Expiration Deadline Demands Attention from Small Businesses
By: Dean A. Langdon
Update 3/27/2021: This provision has been extended to June 2022.
Subchapter V of Chapter 11 is a condensed, less expensive option for small businesses (and small business owners) to reorganize. It has many provisions which are favorable to business owners, allowing them to retain their ownership while restructuring debt. This Subchapter V process has many differences from a regular chapter 11 case. There is a major milestone coming up at the end of March that requires immediate attention by small business owners.
The CARES Act increased the debt limit for small businesses to $7.5 million (from $2,725,625) so more small businesses could take advantage of Subchapter V. That increase in the debt limit ends on March 26, 2021, when it will revert to $2,725,625. If your business has debts between these two limits, and could benefit from a restructuring of its finances, please contact us to learn more about Subchapter V and the potential benefits it could provide to you or your business.
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DelCotto Law Group is Kentucky’s asset protection law firm known for its commitment to the lifetime success of its clients. With offices located in Lexington, Louisville and Danville, DLG serves Kentuckians with complicated financial matters, especially in the areas of bankruptcy and complex litigation. For more information please call (859) 231-5800, email [email protected] or reach us on our contact page.