BUSINESS BANKRUPTCIES: IF YOU’RE FEELING THE PINCH, DON’T WAIT TO FILE
IF YOU’RE FEELING THE PINCH, DON’T WAIT TO FILE
On March 28, 2022, certain provisions in the CARES Act expire. Importantly for businesses on the brink, the amount of eligible debt permissible for a debtor to file under subchapter V decreases from $7,500,000 back to the original amount of $2,725,625. It is uncertain whether Congress will extend this provision before it expires.
Subchapter V is a part of a Chapter 11 reorganization bankruptcy. Subchapter V allows businesses to reorganize with minimal involvement of creditors. So, if your business is thinking of reorganizing and has more than $2,725,625 in debt, consider filing now. To that end, please feel free to call us to discuss the terms of a bankruptcy and do some pre-filing planning.
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Information contained in this Memo is intended for informational and educational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. It is considered advertising under laws of some states. Epps & Coulson, LLP encourages you to call to discuss these matters as they apply to you or your business.