Sub Chapter V

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Sub Chapter V Bankruptcy Attorney In San Diego, California

What Is A Subchapter V Bankruptcy?

In 2019, the Small Business Reorganization Act (SBRA) was enacted by Congress, giving life to Subchapter V of the U.S. Bankruptcy Code. This innovative law represented a significant shift in how small businesses could manage their financial obligations by lowering bankruptcy charges specifically for debts not exceeding $2.7 million. This groundbreaking legal framework took effect in February 2020, just as many small businesses were beginning to face unprecedented challenges. However, the advent of the coronavirus pandemic soon prompted Congress to enhance the debt threshold to $7.5 million as part of the CARES Act. '


This important move widened the scope of eligibility, allowing not only small businesses but also marginally larger ones to participate in this vital program. It enabled them to restructure their debts, many of which had swelled significantly due to the lockdowns and financial hardships induced by the pandemic. This newfound opportunity is highly beneficial for businesses seeking a path to recovery, but navigating through the intricate process of bankruptcy is complicated, and it is not advisable to undertake this journey alone. At Joshi Law Group in California, our accomplished bankruptcy attorneys have an admirable history of achieving positive results for their clients in Subchapter V cases. With our experience, we can guide you through the complexities of the process. Get in touch with us today to discover how we can be of service to you and support you in overcoming your financial challenges.

Contact Joshi Law Group to schedule a consultation with a lawyer today. 619-332-2784

How Can a Subchapter V Bankruptcy Help Me?

Subchapter V bankruptcies, offered by Joshi Law Group in California, enable your organization to distribute your debt over three to five years. During this interval, your company's surplus income will be utilized to satisfy your creditors. This is a mutually beneficial situation as it allows for the elongation of total debt payments – meaning your creditors collect a greater portion of their owed sum. You remain in charge of your operations and assets, but additionally, you'll have the support of a third-party trustee to aid you in crafting an equitable arrangement with your creditors. This ensures everyone involved has the best prospect for a positive outcome. Furthermore, with this method, your administrative costs can be distributed throughout the payment period, aiding you in paying the entire amount over time. It’s a more efficient procedure and typically much less costly than a prevalent Chapter 11 bankruptcy. If this opportunity for a clean slate resonates with you, reach out to Deepalie Milie Joshi, your trusted bankruptcy attorney from Joshi Law Group in California.

Discover If Subchapter V Is the Best Solution for Your Business

If your company has been negatively impacted by the coronavirus pandemic or other unforeseen events, a Subchapter V could bring promise. Schedule a consultation with one of the seasoned bankruptcy attorneys with Joshi Law Group in California, to explore your possibilities. Should a Subchapter V proceeding be your most advantageous route, rest assured, we’ll walk with you every step of the way. Our goal is to assist your business in progressing, even in the face of adversity. Schedule a meeting with one of our bankruptcy attorneys today at Joshi Law Group.

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Disclaimer: We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.

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