If your small business is struggling, a Chapter 11 bankruptcy case may be the optimal choice. This type of bankruptcy is often referred to as a “reorganization” bankruptcy. The process involves a reorganization of your business affairs, debts, and assets, while you remain in control and continue running the day-to-day operations of your business.

The coronavirus pandemic has hit small businesses hard, forcing many of them to close, open at limited capacity, or file for bankruptcy protection. Prior to the passage of the CARES Act, which went into effect on March 27, 2020, filing for Chapter 11 bankruptcy was not an option for most small businesses due to the cost and complexity of the process. The passage of the Small Business Reorganization Act (SBRA) streamlined the Chapter 11 bankruptcy process, allowing small businesses to file and receive the benefits of restructuring under bankruptcy without giving up control of the day-to-day operations. It also eliminated the requirement of the business owner to pay quarterly U.S. Trustee’s fees.

Chapter 11 Filing Procedure in Florida?

A Chapter 11 case starts with the filing of a petition with the bankruptcy court. However, unlike other cases, a petition may be filed involuntarily if your creditors meet the necessary requirements to pursue an involuntary bankruptcy. A petition must include a detailed schedule of assets and liabilities, a schedule of current income and expenses, a list of all executory contracts and unexpired leases, and an official statement of your business’s financial affairs.

If you are a small business struggling with debt, call us today to schedule a free consultation. The Benenati Law Firm has eliminated nearly a billion dollars of debt for its bankruptcy clients, making the firm one of the top twenty filers of bankruptcy in the nation. We have helped thousands of individuals and businesses eliminate their debt and get a fresh start financially. The day you hire our firm, we will contact your creditors to stop the harassment and collection calls. We make our hours convenient for our clients and offer FREE digital sign-ups and consultations on Saturdays (9:00 a.m. – 3:00 p.m.) and throughout the week until 5:00 p.m. If you or your business are in a financial crisis and considering filing for bankruptcy, contact an experienced Orlando bankruptcy attorney who can advise you of all of your options.