Understand Subchapter V and how it can provide effective debt management programs and business debt relief. Contact Protect Law Group today!
Book a Consultation CallIf your business is struggling with overwhelming debt, it's crucial to explore all available options for relief. One such option is Subchapter V. At Protect Law Group, our team of SBA loan attorneys specializes in helping businesses navigate the complexities of Subchapter V and find concrete solutions for their financial challenges. Contact us to learn more!
Subchapter V is a bankruptcy provision specifically designed for small businesses with debt under $7.5 million. It offers an expedited and streamlined process for debt adjustment and provides business owners with a more manageable path to financial recovery.
One significant advantage of Subchapter V is its focus on debt management programs. Under Subchapter V, businesses can propose a debt repayment plan based on their current income and projected future earnings.
Subchapter V benefits for small businesses include easier plan confirmation, debtor-only plan filing, no disclosure statement requirement, contested plan confirmation, relaxed absolute priority rule, no creditors committee, and no quarterly U.S. Trustee payments. These changes result in faster, less expensive reorganizations.
Navigating Subchapter V requires the expertise of SBA loan attorneys. From strategizing debt management programs to guiding negotiations, SBA loan attorneys play a crucial role in ensuring a favorable outcome for businesses seeking business debt relief.
Subchapter V provides small businesses with an opportunity to regain control of their financial situation through efficient debt management programs and business debt relief. By understanding the provisions and benefits of Subchapter V and partnering with experienced SBA loan attorneys like those at Protect Law Group, businesses can navigate this process with confidence and pave the way for a brighter financial future. Contact our team today to discuss how Subchapter V can work for your business!
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Our firm successfully resolved an SBA 7(a) loan default in the amount of $212,000 on behalf of an individual guarantor. The borrower’s business experienced a significant downturn in revenue and was unable to sustain operations, ultimately leading to closure and a remaining personal guaranty obligation.
After conducting a thorough financial review and preparing a comprehensive SBA Offer in Compromise (SBA OIC) submission, we negotiated directly with the SBA and lender to achieve a settlement of $50,000—approximately 24% of the outstanding balance. This favorable resolution released the guarantor from further personal liability and provided the opportunity to move forward free from the burden of enforced collection.
The clients are personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.
Clients borrowed and personally guaranteed an SBA 7(a) loan. Clients defaulted on the SBA loan and were sued in federal district court for breach of contract. The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan. We were subsequently hired to intervene and aggressively defend the lawsuit. After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.
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