In 2021, DelCotto Law Group PLLC filed more chapter 11 bankruptcy cases in the Eastern District of Kentucky than any other firm. [1] Chapter 11 bankruptcy provides an opportunity for corporations to restructure their organizations through implementation of a repayment plan to creditors. While relief under chapter 11 can include business reorganization, it can also provide for an orderly liquidation or a combination thereof. Recent changes in the law have focused on making small business bankruptcy more affordable. In 2019, Congress passed the Small Business Reorganization Act (“SBRA”) which enabled small businesses to file under the newly created Subchapter V. A small business electing to file under Subchapter V has several benefits including the ability to file a plan within 90 days, no creditors’ committee, and streamlined plan confirmation requirements. Regardless of the size of the company, chapter 11 bankruptcy provides a “breathing spell” through the automatic stay to enable the company to continue to operate while developing a repayment plan for all creditors.
[1] Information provided herein based on data from the PACER SYSTEM for 2021 filings.