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Subchapter V of Chapter 11 Bankruptcy in Greenwood

Helping Small Businesses Overcome Unmanageable Debt

Effective as of Feb. 19, 2020, the Small Business Reorganization Act (SBRA) updated the Bankruptcy Code to make Chapter 11 easier for small businesses. Specifically, the SBRA added Subchapter V, designed to expedite and lower the cost of small business bankruptcy proceedings. At the Law Office of Matthew M. Cree, LLC, our Greenwood Chapter 11 bankruptcy attorney is here to help you understand these changes and help your business navigate the road toward debt relief.

Contact the Law Office of Matthew M. Cree, LLC at (317) 830-5993 to schedule your free consultation today.

What You Need to Know about Subchapter V

  • Eligibility - Whether you are filing as an entity or an individual, your debt must not exceed $2,725,625 (subject to adjustment every three years). At least half of this debt must be accrued through business or commercial expenses. As of Mar. 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act has temporarily increased the debt limit to $7,500,000, valid for one year. Unfortunately, you will not qualify for relief under Subchapter V if you are a single asset real estate debtor.
  • Principle players – Prior to Subchapter V, a Chapter 11 trustee was only appointed for a specific reason, such as fraud or gross mismanagement, and they would seize control of your business operations. Under Subchapter V, a trustee will be automatically appointed to facilitate the consensual plan between you and your creditors, while leaving control of the assets and operations in your control. Involvement of an impartial third party is intended to promote a fair and equitable resolution.
  • The process – The Chapter 11 bankruptcy process under Subchapter V is much quicker than traditional proceedings, which also serves to reduce administrative costs. A status conference will be conducted by the court within 60 days from the filing. You must file a Chapter 11 plan of reorganization within 90 days from filing a bankruptcy petition. The process from filing to confirmation is often completed within a few months. Additionally, you do not need to file a disclosure statement, and you are the only one who may file a plan.
  • Plan confirmation – In a traditional Chapter 11 case, creditors could vote on a plan. However, under Subchapter V, you are able to confirm the plan without creditor approval. For this to occur, the plan must be fair and equitable, and the creditors will need to receive as much as if you had obtained liquidation in Chapter 7. You also have the option of contributing all projected disposable income to make planned payments over a 3-5-year period, similar to Chapter 13 bankruptcy.
  • Timing of a discharge – If you are granted a consensual plan (i.e. approved by creditors), you are entitled to a discharge upon confirmation. If the plan is nonconsensual, you will receive a discharge following the completion of all plan payments.

Relief During the COVID-19 Pandemic

The COVID-19 pandemic has caused many businesses to suffer significant losses. Several companies are even needing to file for bankruptcy, even though they experienced steady levels of success before the pandemic. If the coronavirus has severely impacted your business, Subchapter V can help you to pause your obligations and attempt to negotiate with your creditors for the relief you need.

Although Subchapter V, along with other provisions like the CARES Act, are making it easier for small businesses to file Chapter 11 bankruptcy, this is still a decision that should be considered very carefully. The Law Office of Matthew M. Cree, LLC is here to help you make an informed decision about how to help your business overcome severe financial hardship. Reach out to our experienced bankruptcy attorney in Greenwood today.

Contact us online or call (317) 830-5993 today to request your free consultation with our team.

The Stories That Make a Difference 

Hear it From Our Clients 
  • I had a great experience with Matthew! He made the whole process simple.

    “I had a great experience with Matthew! He made the whole process simple and made sure to stay in touch every step of the process. I definitely recommend him to anyone who may be seeking bankruptcy ...”

    - Justin M.
  • Matt was professional, he handled everything.

    “Matt was professional, he handled everything. He gave me all the instructions I needed to do to get things rolling. Everything went quick and easy.”

    - Deanna B.
  • Attorney Cree made sure he explained everything making sure I understood.

    “Being so young and unknowing of all of my options, Attorney Cree made sure he explained everything making sure I understood. Communication was great not pushy at all. Makes you feel at ease. I’m ...”

    - Lisa L.
  • Mr. Matthew Cree is an AMAZING Attorney! He always answers your questions very promptly.

    “Mr. Matthew Cree is an AMAZING Attorney! He Always answers your questions very promptly. Whether they are by text, E-mail or by direct phone call. He makes everything from start to finish very ...”

    - Kellie C.
  • Every time we had a question or concern he would get back to us that day.

    “He is very professional and prompt! Every time we had a question or concern he would get back to us that day. I recommend anyone to reach out to Matt for any legal advice for bankruptcy! By far the ...”

    - Tyler H.

Meet Matthew M. Cree

Personal Guidance Through the Entire Process
  • Matthew M. Cree Photo
    Matthew M. Cree

    Attorney & Counselor at Law

    A Little About Matt Cree While passing the bar in both Indiana and Texas in the same year, I decided early on to stay true to my roots as a Hoosier and remain close to family in Johnson County, Indiana. For eight-and-a-half years, I practiced with one of the largest law firms in the county where I focused on bankruptcy , consumer rights, foreclosure defense , and general litigation. In 2015, I decided to make the leap and open the Law Office of Matthew M. Cree, where I continue to provide ...

What You Can Expect 

Help Starts Here
  • Experience

    Matt knows bankruptcy inside and out, and has over a decade of experience.

  • Flexibility

    We offer after-hour and weekend appointments to accommodate your busy schedule.

  • Accessible

    Matt is always available to answers your questions. You can expect prompt response times.

  • Personal Attention

    He takes the time to explain the process and walk you through it, step by step.

  • Free Consultations

    Your consultation is free. It's one hour and it could change your life.

  • Empathetic

    Matt has been though bankruptcy before and understands what you are going through.

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