Jupiter Subchapter V Bankruptcy Lawyer

Helping You Through Financial Crises in Palm Beach County

Filing for bankruptcy is no small matter and requires the professional skill and attention of an experienced bankruptcy litigator. Julianne Frank, Esq. has a great track record with bankruptcy litigation and dedicates her bankruptcy practice to saving struggling small businesses. In fact, Attorney Frank was one of the first lawyers in the country to file Subchapter V, so you can trust that she has the knowledge and experience with Subchapter V litigation to deftly handle your case.

Julianne Frank is a friend and a brilliant attorney.
“Julianne Frank is a friend and a brilliant attorney.”
- Johan K.
EXCELLENT!!!
“EXCELLENT!!!”
- Karolina K.
Julianne is a pleasure in all ways, but more importantly, she is a true master of the law as to her specialty, Bankruptcy Law.
“The case I referred to Julianne was complex and required considerable expertise.”
- Cecil H.
I am not proud that I had to file chapter 11 for my business but I am grateful for Julianne Frank.
“It was the smoothest process and Julianne has been doing this for 4 decades so she is the only choice when it comes to this matter.
”
- Michael B.
She handled it professionally and did an excellent job all around.
“. The future is bright and I am again able to look ahead to retirement. The decision to file was the right one for me.”
- Paul R.

What Is The Small Business Reorganization Act?

The Small Business Reorganization Act went into effect on February 19, 2020 and added a new subchapter V to Chapter 11 designed to make bankruptcy easier for small businesses. The statute defines eligible small business as “entities with less than about $2.7 million in debts that also meet other criteria,” according to the U.S. Department of Justice, and the act:

Imposes shorter deadlines for completing the bankruptcy process
Allows for greater flexibility in negotiating restructuring plans with creditors
Provides for a private trustee who will work with the small business debtor and its creditors to facilitate the development of a consensual plan of reorganization

Be aware that entities that derive substantially all their income from operating a single real property are ineligible for Subchapter V. Also, Subchapter V does not repeal existing Chapter 11 provisions regarding small business debtors; instead, it creates an alternative procedure that small business debtors may elect to use.

Subchapter V Payment Plans

Subchapter V allows a debtor to spread its debt over 3 to 5 years, during which time the debtor must devote its projected disposable income to paying creditors.

Generally, this benefits both debtors and creditors, as it allows debtors to spread payments over time and allows creditors an available recovery from debtors who have a realistic expectation of income over time. In a traditional Chapter 11 case, administrative expenses must be paid at plan confirmation, but under Subchapter V, they may be paid over the life of the plan.

Subchapter V is generally a faster, more efficient bankruptcy process. A plan of reorganization must be filed with the bankruptcy court within 90 days of the commencement of the proceeding. However, the bankruptcy court may extend this deadline under special circumstances a debtor should not be held accountable (e.g., COVID-19).

In addition, certain documents like disclosure statements do not need to be drafted as they would in a traditional Chapter 11 bankruptcy.

Subchapter V restructurings are similar to Chapter 11 bankruptcies in that businesses or individuals with primarily business debt have the option to either:

Selling off assets to reduce debts
Funding a reorganization plan with future income
Conducting a liquidation of desired assets

The plan of organization must be feasible and fair, filed in good faith, and in the best interest of the creditors. Subchapter V businesses also have the protection of the bankruptcy court and can receive appropriate flexibility from creditors.

Regarding the role of the trustee, under Subchapter V, a trustee is automatically appointed, but the debtor retains control of its assets and operations. Creditors’ committees are formed only for cause in Subchapter V cases, in contrast to Chapter 11 cases.

Subchapter V also cushions small business owners from certain personal consequences that might discourage a Chapter 11 filing. For instance, if the debtor’s principal used their primary residence as security for a loan to fund the small business, the debtor’s plan may modify the loan. Additionally, Subchapter V also does not require equity holders to provide “new value” if they want to retain their equity interest in the business.

Call (561) 220-2528 or contact her firm online to discuss your case with an experienced professional.

Schedule Your Initial Consultation

First Name
Please enter your first name.
Last Name
Please enter your last name.
Phone
Please enter your phone number.

This isn't a valid phone number.
Email
Please enter your email address.

This isn't a valid email address.
Are you a new client?
Please make a selection.
Message
Please enter a message.

The Effects of COVID-19

The coronavirus pandemic may have pushed small businesses that only recently been financially stable to consider bankruptcy options, including Subchapter V. While bankruptcy filings, especially in the Chapter 11 category, are lengthy and not always advised, an unprecedented pandemic may warrant the necessity to file. Filing for Subchapter V of Chapter 11 can allow small businesses to pause their financial and business obligations momentarily to negotiate with lenders, landlords, and other creditors.

Small businesses should be careful about filing for Subchapter V if they are uncertain, though, because the process will require extensive time and research into the necessary financial documents to move forward in the legal process efficiently. Additionally, note that the U.S. Small Business Administration indicates that applicants subject to a bankruptcy proceeding are ineligible for the Paycheck Protection Program (PPP).

Call (561) 220-2528 to Get Started Immediately

If you are looking to file for bankruptcy under Subchapter V of Chapter 11, it is very important that you consult an experienced bankruptcy lawyer about your next steps. Julianne Frank, Esq. has extensive experience working with struggling small businesses in Jupiter, Florida with bankruptcy litigation, and you can be sure that she will put her skill and knowledge to use in your case. However, be prepared to devote plenty of time to the litigation process, as the success of your case will depend on your ability to go the extra mile with Attorney Frank as you walk her through your financial documents and other relevant asset information.

For more information about Attorney Frank’s practice, schedule an appointment with her firm at (561) 220-2528 or online here.

What Makes Julianne Frank Different

Honesty & Transparency
Tailored Solutions for Each Client
Client-Focused Representation
Over Three Decades of Experience

Start Your Journey Discuss Your Case with a Seasoned Attorney Today

Julianne Frank Esq. is a skilled and experienced attorney that takes on the most difficult of cases and wins. If you believe you have a case only Julianne can resolve, get in touch today.