DEBT RELIEF
Chapter 11 bankruptcy allows businesses — and high-debt individuals — to reorganize their debts and continue operating while repaying creditors under a court-approved plan. Attorney Michael Goldstein helps small business owners navigate Chapter 11 and the newer Subchapter V small business reorganization process.
Services are available for clients in Massachusetts, Maryland, and Washington, D.C.
WHAT IS CHAPTER 11?
Chapter 11 is a reorganization bankruptcy that allows a business to remain open and operational while developing a plan to restructure its debts. Unlike Chapter 7, which liquidates assets, Chapter 11 is designed to preserve the business as a going concern.
For small businesses, Subchapter V of Chapter 11 — added by the Small Business Reorganization Act of 2019 — provides a streamlined, lower-cost path to reorganization. It eliminates many of the procedural burdens of traditional Chapter 11 and is specifically designed for businesses with debts under the statutory threshold.
Chapter 11 can also be used by individuals with debts that exceed Chapter 13 limits. Attorney Goldstein evaluates each client’s situation to determine whether Chapter 11, Subchapter V, or another path is the best fit.
CHAPTER 11 TOOLS
A Chapter 11 reorganization gives your business powerful tools to restructure and survive.
Modify the terms of loans, leases, and contracts through the plan process
Immediately halt all collection actions, lawsuits, and creditor pressure
Reject unfavorable commercial leases and executory contracts
Negotiate reduced payoffs and extended terms with secured and unsecured creditors
Streamlined small business reorganization with reduced cost and complexity
Continue business operations throughout the reorganization process
Protect business assets while restructuring obligations
Obtain court approval of a reorganization plan and emerge from bankruptcy
THE PROCESS
File the petition and schedules. The automatic stay immediately stops all collection actions against the business.
Develop a reorganization plan that addresses how creditors will be treated and how the business will move forward.
Creditors vote on the proposed plan. Under Subchapter V, the debtor can confirm a plan without full creditor approval.
The court confirms the plan. The business emerges from bankruptcy and begins performing under the confirmed plan.